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Nvidia warns of 50 percent revenue dip

Nvidia warns of 50 percent revenue dip

Nvidia has revised revenue expectations for the last financial quarter to take in to account an expected 50 percent drop.

More bad news from the financially struggling tech sector was revealed this week with Nvidia announcing that it is to slash its fourth quarter revenue figures by up to fifty percent.

Nvidia says it is blaming a massive dip in customer demand for its high-end graphics and system chipset hardware for a sudden drop in revenue.

In a statement, the company said that “total revenue for the fourth quarter of fiscal 2009 is now expected to decline forty percent to fifty percent sequentially as a result of further weaknesses in end-user demand and inventory reductions by Nvidia's channel partners in the global PC supply chain.

While the revised figures shouldn't put the company in the red, a fifty percent dip in revenue is no laughing matter – and the company is hardly alone in its sector. CPU specialist Intel has also restated its revenue projections for the last financial quarter to take into account a $2 billion shortfall, and yesterday we learned that consumer electronics giant Sony was due to post its first loss for fourteen years. Clearly there's a slowdown in spending – both at the channel and end-user levels – that companies are going to have to learn to live with a shrinking market for the foreseeable future.

Have you noticed your own spending habits changing as a result of the ongoing slowdown, or are you happily investing in the latest and greatest to keep your favourite companies ticking over? Share your thoughts over in the forums.

15 Comments

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dylAndroid 14th January 2009, 09:35 Quote
Ouch, a 50 percent drop in revenue can flatline a business.
Phil Rhodes 14th January 2009, 11:45 Quote
Too bleedin' expensive.

I've recently played Far Cry 2, or at least I've played it up to the point where you realise it's shown you all its tricks, which is about the first act's worth. I'm playing it in a way that I'm not enjoying as much as I could, because the graphics are more demanding than my 9800 GT - which I considered fairly high end and expensive three months ago - can deal with very well.

Doing anything about this situation costs more than a PS3. So uhm.
bahgger 14th January 2009, 12:59 Quote
Such seems to be the conundrum we face as PC gamers these days Phil :( It is sad isn't it? I recently upgraded my PC just to play GTA IV.. how sad..
Bladestorm 14th January 2009, 13:04 Quote
I've been trying to decide and commit to a new graphics card for 18 months now and I've still not managed it so I don't think the current decline has particularly effected me, so much as the sea of grey and the extra problem of both companies suddenly releasing a rush of cards with new mounting holes for cooling (grr don't want to buy a new block!)
scarrmrcc 14th January 2009, 14:00 Quote
well, i think part of it, is that they come out with a new card every couple of weeks it seems (i know it longer than that, but i feels like it)

and so many people wanna wait, because the card the car they want will be cheaper soon, or outdated soon.

and the rebate companies have people scared, because they going under, and not supporting rebates somtimes.
OnyxLilninja 14th January 2009, 14:15 Quote
Also remember ATI came out with a very competitive product for the first time in a while. I know a fair few people who have gone back to ATI for the first time in years for their latest cards. Easier to blame the credit crunch than your own products....
wuyanxu 14th January 2009, 14:23 Quote
well, when you start to rename 8800GT to 9800GT, and don't have a profit margin for your latest 65nm GPU, revenue is sure to be down.

they made very little for GT200 65nm chips, im no surprised.
black force one 14th January 2009, 18:13 Quote
finally it's good they "nvdia" go eat a bit eat the grownd cause when they are leader finally they don't do anything for end user
we are french and we help ati amd for the existence of concurrence in the futur and the next year we sale many many crossfire or crosfire x OF HD 4850 OR HD 4870 with out any saling for nvidia ....NOTHING
and you know why??
with only one leader they trust the market and for me i dont like this ****ing commercial attitud NVIDIA IS avery bad company only money
thehippoz 14th January 2009, 18:17 Quote
they need this though.. wake em up- they've been nothing but master bilkers since the 8800gtx was released.. the 680i and the 8800gtx were awesome for their time but then they sat on it and did nothing afterwards worth mentioning besides go spend their money on suki suki

this new classified board is a step in the right direction.. finally something noone else has again
FatMikel 14th January 2009, 21:57 Quote
Quote:
Originally Posted by black force one
finally it's good they "nvdia" go eat a bit eat the grownd cause when they are leader finally they don't do anything for end user
we are french and we help ati amd for the existence of concurrence in the futur and the next year we sale many many crossfire or crosfire x OF HD 4850 OR HD 4870 with out any saling for nvidia ....NOTHING
and you know why??
with only one leader they trust the market and for me i dont like this ****ing commercial attitud NVIDIA IS avery bad company only money

:| lolwut
Irvine 15th January 2009, 00:20 Quote
Quote:
Originally Posted by black force one
finally it's good they "nvdia" go eat a bit eat the grownd cause when they are leader finally they don't do anything for end user
we are french and we help ati amd for the existence of concurrence in the futur and the next year we sale many many crossfire or crosfire x OF HD 4850 OR HD 4870 with out any saling for nvidia ....NOTHING
and you know why??
with only one leader they trust the market and for me i dont like this ****ing commercial attitud NVIDIA IS avery bad company only money

lolwut seconded.

Back to topic, I'm not surprised at all. Luxury items like high-end graphics card would be the first thing I'd take off my to-buy list in an economic crisis. Munchie chips over silicon chips for me, please. :D
Phil Rhodes 15th January 2009, 00:36 Quote
I just realised I've never actually seen Far Cry 2 on a PS3, so I have no idea if it has the slightly irritating degree of draw distance issues with both shading and geometry that I have to put up with.

The shadows pop up so severely that driving is rather like chasing the edge of a particularly energetic cloud formation.
LordPyrinc 15th January 2009, 03:33 Quote
My spending actually went up lately, but little of it was for the PC. I bought a 40" LCD TV and a Blu-Ray Player. Add to that buying about a dozen Blu-Ray movies, the economic slump hasnt really affected my spending.

My biggest gripe with the video card industry (as Ive said before) is that they need to have a better model numbering scheme. Stop trying to fool the customer into buying an inferior card just because the model number is higher. For the average consumer, a 9000 series must be better than an 8000 series card because the number is greater.

Stick to a damn numbering scheme where the greater the model number, the better the card. None of this BS with trying to fool the consumers.
Phil Rhodes 15th January 2009, 10:10 Quote
Quote:

a 9000 series must be better than an 8000 series card because the number is greater

Well, you do rather assume...

I find the model numbering system completely mystifying. You end up having to go and look every number up on a website, find out what it means, then try and figure out what an extra 26 shader pipelines will get you. Is GTX better than GT? Argh!
Top Nurse 22nd April 2009, 12:36 Quote
Sorry about resurrecting an old thread, but just read the news bit.

The last card I bought was an Asus 6600GT (in 2006?) because I couldn't afford an 8800 series card. After that the numbering system was so screwed I wasn't sure what I might be buying till the reviews came out. By the time the reviews came out the cards were heading for a slide towards a "new" card. :bronx cheer:

All was well till I smoked the 6600GT a few weeks back and then decided on another Asus, 4870 1 Gb card. Still not sure if I got a decent card, but seems to be okay. The way Nvidia is still playing games with their numbering system I think I will avoid them for a few years.
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