NVIDIA recently announced its second quarter financial results for its Fiscal year 2023. By its estimates, the GPU brand admits that it has fallen short of achieving its second quarter goal, by at least US$1 billion (~RM4.46 billion).
NVIDIA says that its second quarter revenue was approximately US$6.7 billion (~RM29.85 billion), a 19% decrease from its originally US$8.10 billion (~RM36.09 billion), but still a 3% improvement over the prior year. On that note, the company reported its gaming revenue at US$2.04 billion (~RM9.09 billion), down 44% sequentially, and 33% from the last year.
The reason behind the nearly 50% drop in gaming revenue, according to NVIDIA, can be attributed to the lower sales of gaming products, which in turn can be attributed to the market entering the post-COVID stage. As gamers begin returning to both work and school.
“Our gaming product sell-through projections declined significantly as the quarter progressed,” Jen-Hsun Huang, founder and CEO of NVIDIA said. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.”
In regards to the last bit, Jen-Hsun basically said that NVIDIA was already in talks with channel partners, in order to adjust pricing programs, as a reflection to the challenging market conditions. In shorts, gamers can and should expect a price reduction of the brand’s ongoing GeForce RTX 30 series GPUs. Not that that isn’t already happening, mind you: the weaker sales in GPUs are generally agreed to have been caused by the crash of the value of Bitcoin and other cryptocurrencies, along with the excess inventory of which cryptominers began dumping when the crash began.
That having been said, NVIDIA is expected to announce its next-generation GeForce RTX 40 Series, powered by its Ada Lovelace GPU architecture, sometime within the third quarter of this year. Typically, the GPU brand would launch a new series of cards in the month of August or September, as it has done in the past with not just Ampere, but also Turing in 2018.