Nvidia’s earnings report shows PC gaming marekt is dying

Only 1.3 billion , well that ain't good enough ...

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PCG

http://www.pcgamer.com/nvidias-earnings-report-highlights-health-of-pc-gaming-market/#article-comments

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Quarter after quarter we hear from market research firms that mainstream PC sales are down, but if you shift your focus to the computer gaming category, you'll see the segment is alive and thrving. If anyone needs further proof of that, take a look at how Nvidia performed during its first fiscal quarter for the period ended May 1, 2016, along with its future outlook.

Nvidia reported $1.3 billion in revenue, which is down 7 percent sequentially from $1.40 billion, but up a healthy 13 percent from $1.15 billion in same quarter a year ago. After paying the bills, Nvidia was left with a nice profit of $263 million, which again is down sequentially (11 percent) but up a whopping 41 percent from $187 million a year ago.

Gaming continues to be by far the biggest contributor to Nvidia's financial well being. It raked in $687 million (PDF) last quarter from its Gaming division, up from $587 million a year ago. That's more than all of its other areas combined, all of which added more than $100 million to the pile each.

"We are enjoying growth in all of our platforms -- gaming, professional visualization, datacenter and auto," said Jen-Hsun Huang, co-founder and chief executive officer, Nvidia. "Accelerating our growth is deep learning, a new computing model that uses the GPU's massive computing power to learn artificial intelligence algorithms. Its adoption is sweeping one industry after another, driving demand for our GPUs."

Looking ahead, Nvidia expects its just announced Pascal architecture to keep the good times going.

"Our new Pascal GPU architecture will give a giant boost to deep learning, gaming and VR. We are excited to bring a new wave of innovations to the markets we serve. Pascal processors are in full production and will be available later this month," Huang added.

Nvidia will release its Pascal-based GeForce GTX 1080 on May 27 starting at $599 and its GeForce GTX 1070 on June 10 starting at $379. Both are more powerful than a GeForce GTX Titan X, a surprise revelation considering their price points, while the GeForce GTX 1080 is also supposed to trump the performance of two GeForce GTX 980 graphics cards in SLI.

If the reception to Pascal is as anticipated, Nvidia expects to collect $1.35 billion in revenue for its second quarter, plus or minus 2 percent.

its all over

View: Annual Data All numbers in thousands

Period Ending Dec 26, 2015 Dec 27, 2014 Dec 28, 2013

Total Revenue 3,991,000 5,506,000 5,299,000

Cost of Revenue 2,911,000 3,667,000 3,321,000

Guess who?

I see lots of people saying they are going to get one of the 10xx cards. I'm pretty sure sales will be just fine this year.

This just seems to be the nail in the coffin. RIP PC, you had a good run :P

Some of the people must've switched to AMD.. I expect them to make more money with 1070 and 1080 after release.

Good to Nvidia on the surge.

I'll be getting a 1080

After all the many attempts of deliberately poor ports, corrupt media blackouts, DRM and developers jumping ship - like a mountain PC gaming remains.

Very impressive: https://youtu.be/ZHwVBirqD2s

Ouch, PC can't catch a break. Well, no wonder with the PS4 reaching close to 50 million sold units and all.

:P

Buh buh teh piracy!!!

Denuvo will make PC games sell billions!!

TC....your thread title might make some Hermits, here, not bother with "another" PC is dying thread.

News is good and more should see it.

RIP PC Gaming.

7% down in sales is an absolutely expected thing when we are on the edge of the new gpu architecture change, a jump from DirectX11 to DirectX12. So it's no wonder that as tech savvy people as PC gamers are holding off in their purchases until GTX 10XX line up is released. Basically it's next gen for pc. Our pc gens are defined by gpu manufacturers. So the sales will skyrocket again when Pacal and Polaris line up are released.

LOL blame me i held onto my GTX 580 for 6 years, when 1080 launches BOOM!

Also Skylake so i will be adding to their sales numbers too haha.

Holy crap! Gonna burn mine and buy a Wii.

Our main gens are when major GPU features change like DDR ram

Last time it happened was in 2009

And this time it will be in 2017 (real next gen HBM2 Ram)

Soo if we go by 8 years cycles next major hardware change will be in 2025...

Looks like Nvidia got a small bump from desperate Lemmings who are fed up with how shitty Xbone is. Jokes on them when they find out that PC can't play Bloodborn and Uncharted either lol!

@speak_low: What do you expect from the same moron's who when into baby mode because high to very high end gaming PC's are like less than 5% total of the PC community. While the 80 - 90% is just trash computers weaker than both the x1/ps4 & even wii u.

Lol, some salty gamers in here.

Triggered by the mere positive mention of the PC, you guys are like SJW's :D

Either that or you walked in on the PC f***ing your mom.

That profit margin is actually kinda iffy. Being up over last years numbers is good though. Let's hope the 10 series shows a good boost in margin. I don't want to see another Intel situation...

ftfy

What a load of bs. It means the market is shifting to AMD. That's what happens when you leave the console sector.

@True_Gamer_: HBM2 equipped AMD Vega GPU's have been moved up to an October 2016 release date.

As for nVidia, it's no surprise that the Android market hasn't panned out. 99% of Android games have been utter garbage thus far. Instead of abandoning it completely, maybe they should team up with Microsoft on the mobile Windows 10 platform? There is already a well established gaming presence on Windows, afterall, and Microsoft could use some help establishing a presence in the market.

Also, I wonder if nVidia is getting an early start on building a bridge with Intel...

There have been no minus signs, PC hardware and gaming sales have been constantly on the rise since 2009.

PC has double the high scoring exclusives than PS4. Hell of a joke on them.

http://www.gamespot.com/forums/system-wars-314159282/complete-analysis-of-steam-hardware-survey-2016-ed-33145952/?page=1

You mean 50-60%.

Always best to compare quarterly sales on the same quarter from the previous year. Comparing fiscal quarters sequentially is silly, whether they are up or down, the market ebbs and flows in the similar patterns every year, Q1 for nVidia comes at the start of the year when sales would traditionally be lower after their Q4 coming in over Christmas. Then the new cards are just around the corner, normally hitting in Q2 or occasionally Q3. Quarter 1 is pretty much their lean times.

Profits rising in comparison to Q1 2015 shows good growth, had the profits dropped in comparison to Q1 2015 then they'd maybe have cause for some concern.

well, what's the point, PCs were already well ahead of consoles when the generation started and since developers cater to the lowest common denominator there's no real need to go to such extremes updating ones hardware, not until the next iterations of consoles start putting new demands on gaming and therefore the PC ports could use a little extra juice to get even more out of their games

I'm pretty sure there are many PC gamers holding off on GPU purchases like yours truly. My 4Gb GTX 770 still has some life left in it. I'm patiently weighing my GPU options.

@uninspiredcup: Its a pc, not really impressive

Well pirates can't play any PC games nowadays for Denuvo. No wonder Hardware sales dropped as pirates were majority numbers of PC gaming. Why buy a GPU , when you can't play pirated games anymore?

Facebook games and mmo's have never been so popular, its good to see PC thriving.

I'm sure the asian market/brazil/russia(these presented what 90% of the pirate dl's in the latest charts?) are big 600$ gpu spenders!

This is a hardware sales thread.

With that being said, Facebook games are separately marked in PC sales charts and do not contribute as to why PC gaming sales are above all three consoles put together for 2014/15. MMOs are a solid and serious gaming genre, so I'm not sure what your snark angle was with that. I'm assuming because they aren't really big or good on consoles yet. Don't worry, maybe next gen.

Nope, all together and PS4 has sold 40+ million so that's 1.6 billion on its own. Pretty neat.

Why this raport does not include Steam that earned 4 billion last year?

And mind you that year over year increase came before 10xx series are launched. If they manage to have a good launched it will be a great year for nvidia.

More or less should be the same for AMD gpu department

Sales chart show exactly how much of PC's revenue was Web/Social games.

For 2015: Consoles (all 6) made up 27% of the total gaming revenue while PC made 30% WITHOUT Social/Web games. Social/Web games were 7% of total gaming revenue. If you really want, you could lump them together and say PC was 37%. But clearly PC is not thriving due to that slice, which has actually fallen 3% from 2014 so they are not "as popular as ever". People are using their phones more for those type of games now. Also, MMO (while amazing and varied) are also not popular as ever. Maybe on consoles for really really bad wannabe MMO like Destiny and Division, which barely classify as MMO.

UPDATE: Web/Social games has actually dropped to 5% for PC section in 2016, moving even more towards phones.

I

The only difference between a console and a pc is the price tag and the simplicity.

At one point PCs had limited options like consoles, consoles are just PCs specifically made to play games so people don't have to the deal with the complications of installing a game.

And PC is dying out? So people will just throw out their computers for an xbox one and start using Microsoft word on their xbox one to complete their work assignments? What a bunch of BS, all that means is that the xbox one has become a desktop. Don't you guys realize at some point you need to stop calling them consoles and call them PCs? Like really...

As long as it is a part of our daily lives it isn't going to shrivel up and die, I mean is it really that hard to think that you're buying a pc not just for games but for other things in your life?

You can't connect NVidia sales to pc death, it doesn't even make sense.

He's trolling. The OP actually indicates growth, as does every sales chart for pc gaming.

The post is in response to the person talking about the hermits, the threadmaker obviously fooling around with the topic title.

Just explaining that you cant connect just any number of different hardware purchases on different PC parts then connect it to success or failure of the pc.

He attacks pc gamers randomly in many threads. Dude is just looking for bites.

Perhaps they only went down because a lot of people, like me, were waiting for Pascal. And now we're close. 1070, the generational leap we've been waiting for.

I have 2 970s and I am also weighing my options.

Might hold off another year or so and by then there might be enough decent VR games to make me want to upgrade.

@zergforlife:

Jankor is MAD..lol

Well its no wonder why the best of the best-And by golly I mean the BEST exclusive games the industry has to offer are only on consoles as per GS scores. Maybe when PC can focus on real games instead of Candy Crush and Farmville it may have a shot.

Consoles win again.

RIP PC gaming. PC2 can't come soon enough.

The reason why Nvidia's numbers are lower is because everyone that whats one of the 900 series already has one since 2014 to early to mid 2015....

Also to the fact that we are on the verge of new series so why spend around or above $300 on a 970 months before release when you can spend under $400 and get a new 1070 that has 2x the memory and 50% faster, with newer features.

Oh, you were trolling me -_- I just realized this is your shtick, I was fooled.

Financial reports, how do they work?