Nvidia Says PC Gaming Its Biggest Market
While chipmaking giant Nvidia raked in revenue to the tune of $155 million from the sales of crypto mining cards during the first quarter of the year alone, it maintains that PC gaming is still its most important avenue of revenue.
Nvidia revealed its latest financials by way of an update on Wednesday, saying it expects sales to the value of at least $400 million from its crypto mining cards to be generated for the current quarter. Even so, said CEO Jensen Huang, cryptocurrency cards remain but a bone thrown to gamers wanting to mine digital currency such as Bitcoin and Ethereum. According to Huang, Nvidia’s gaming processors remain the driving force behind its core business. The sale of gaming chipsets generated a staggering $2.76 billion during the first quarter of the year – which marks an impressive 106% year-on-year increase.
Protecting Gamers From Miners
As for why Nvidia decided to start manufacturing GPUs used for crypto mining in the first place, Huang explained that this had started to push the company towards a backlog in terms of the availability of cards primarily meant for gamers.
Huang said the idea was to protect Nvidia’s core market, namely its gaming market, from missing out on available supply because of crypto miners continuously buying out those stocks meant for PC gamers.
The Nvidia CEO added that gaming is no longer just about PC video games for the sake of gaming. Instead, it has now become infused into the world of sports, eSports, art, and even the way people socialise with one another. He said the company expects its current experience of the trajectory of the video games market to last for quite some time yet.
Serving Two Distinct Markets
It’s not hard to see exactly why Nvidia would have taken the decision that it did, which is to separate the production of crypto-mining chipsets from that of PC gaming graphics cards. In fact, anybody who has tried to buy one of Nvidia’s new GeForce RTX 30-series graphics cards will be able to attest to its unavailability.
The short supply and high demand have seen the cards literally fly off the shelves the minute they become available for sale, which has now led to online retailers charging up to double the recommended retail price.
Although it’s hard to determine whether the cards are being purchased for gaming or for crypto-mining, Nvidia says it now aims to determine the answer by adding software to its graphics cards that will make crypto-mining more difficult to do.