Nvidia to push GeForce Founders Edition graphics cards - AIB partner profitability to suffer

Written by Jon Sutton on Sun, Jan 29, 2017 2:01 PM

Nvidia’s Founders Edition graphics cards have certainly ruffled a few feathers over the past year. Add-in Board (AIB) partners are understandably a little bit miffed Nvidia is eating into their profits. From Nvidia’s point of view this is a way to cut out the middle-man from the supply chain and reap greater direct profits from its graphics cards. Not only do they get their Founders Editions out first but they also charge PC gamers extra for the privilege of buying it earlier.

Nvidia’s tactic is treading a fine line between competition and profiteering in the eyes of AIB partners however, and it turns out this affecting the bottom line of GPU suppliers from Taiwan and China already. According to Digitimes this includes Asustek Computer, Gigabyte, MSI, Palit, Zotac and Colorful, all of whom are allegedly being impacted by Nvidia’s increased sales and profits from its Founders Edition graphics cards.

According to DigiTimes’ sources however, there is going to be no change from Nvidia for the time being. In fact, the increased sales and profits from GeForce Founders Editions has allegedly strengthened Nvidia’s resolve on the matter. Nvidia wants to position the Founders Editions as the high-end PC gamers’ choice, encouraged by 43% of GPU market revenue coming from high-end graphics card sales. It’s not hard to see from looking at pricing structures that there are no doubt fantastic margins on the top end GTX graphics cards compared to the lower-end, aided by the enthusiast gamers who are willing to pay over the odds for the best possible experience.

This renewed focus on its GeForce Founders Editions does leave Nvidia in an interesting position. AIB partners aren’t liable to forgo making their own cards entirely but it is surely an encouragement to cosy up with AMD a little more. Of course market forces demand it will surely go the other way as well; AIB partners increasing their competitive advantage with cheaper prices and faster overclocks on their GeForce models. That will certainly be Nvidia's official line on the matter - You're free to make a better card if you want.

How do you think the Founders Edition trend is going to shake out for Nvidia? Will AIB partners ever abandon ship? Have you bought an FE graphics card? Let us know what you think!

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08:43 Feb-01-2017

Balance will come in the market eventually, even if its late. AMD will bring competition and make it a fair play soon.


(btw guys help me out with thumbs cuz i'm kind of in trouble now :S)

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15:21 Jan-31-2017

And consumers to suffer also

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15:30 Jan-31-2017

Yes.


Altleast who planned to buy it from their pocket money

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18:17 Jan-31-2017

Yep,obviously I wasn't talking about those rich people who go out and buy every new flagship GPU that releases. :D

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08:46 Feb-01-2017

I agree with that bud.

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19:22 Jan-30-2017

I'm guilty of having purchased two 1080 FE cards the minute they went on sale.


But in my defense - I'm sandwitching 4 cards on my mobo, so the blower style coolers work to my advantage by getting the hot air out of the case rather than fanning it around inside, degrading the cooling over time.


Did I pay through the nose for the FE's? I thought so at the time. I paid £619 each. But it just so happens that third party cards are no cheaper even now, half a year later, and they also provide no better overclocking than I am getting on my FE cards. Only advantages are better cooling overall and less noise. Two things I'm not picky about anyway...


Plus I like the design :D

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20:02 Jan-30-2017

So, you have the FE cards the way they are built, right? You did not swap the coolers for a liquid solution..?

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00:26 Jan-31-2017

I don't understand who the hell decided that my comment is worth downvoting, but what the hell, I guess...


Yeah, I'm using stock blowers for now.

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01:35 Jan-31-2017

I was wondering the same thing bud. Here's a couple of upvotes.

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13:00 Jan-31-2017

Thanks, buddy :)

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13:29 Jan-31-2017

Some people are jealous because you can afford an awesome PC. I say if you can afford it, go for it :)

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17:08 Feb-01-2017

I'm far from a millionaire :D
Though I tend to buy high-end stuff these days - it just lasts longer and is more enjoyable to use during the time you do. This lesson took me years to learn...

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21:29 Feb-01-2017

same, although I learned too early and I'm always broke ass as a result

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09:06 Feb-02-2017

Even if I could afford higher end stuff, I personally would wait a little for more variety of cards and/or for prices to stabilize. Even if I'd buy the same cards you did, I would wait a little to not give more money than they should ask for... even if it wouldn't hurt my pocket. :)

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05:58 Feb-03-2017

Regardless, like I menationed earlier, in the UK the situation is that now half a year later my cards are actually NOT more expensive than the competition and when the AiB cards came out they were a £100 more expensive on average. It played the other way around for the UK market, weirdly enough. xD
Plus I now enjoyed the cards since launch from day 1, so that's an added bonus. And if that ended up being my gamble for a few weeks before AiB cards even appeared on stores - so be it :)

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08:44 Feb-03-2017

Got it.


Btw how are the temps for your cards under load? Have any chassis fan setup worth mentioning?

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16:00 Jan-31-2017

hey, nice rig!


do u use 4 cards for rendering and work stuff or just gaming?

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17:06 Feb-01-2017

Thanks! 3 and 4 way SLI are dead. I use the two GTX 1080s for gaming and when I am rendering or computing something on the GPUs (say, rendering in Redshift or Iray, computing models using photogrammetry, etc) then I fire up the two Quadro M5000 GPUs. I usually have the Quadros turned off at the mobo level (my mobo has switches to turn different PCIe slots on and off) to save on power and heat.

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15:04 Feb-02-2017

Awesome mate i have Two 1070 in sli and they are my little beasts. But there are no option to choose 1070 sli and put on my profile. :( But they are different one is Founders Edition from ASUS and other is G1 Gaming from Gigabyte

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06:03 Feb-03-2017

Any other time I would have said "talk to Pip", but he's been offline since August and I'm not sure where he's gone... The next best thing is to ask Felix and he'll be able to direct you to whoever is responsible for this now.


Also, a tip - both cards run at the same speeds when in SLI, with the lower card being the one that sets the common clocks. So if your G1 is faster - OC the FE card to squeeze a bit more out of your SLI setup!

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15:46 Jan-30-2017

A poor man like me cannot live in the world of nvidia.


I hope amd will treat me good.


Thats why I like amd atleast I can play games on pc even on low setttings 1280x720 60hz 16:9

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08:46 Jan-30-2017

I didn't not know enough about PC hardware when I picked the parts for my current rig, but if Vega will have good performance and is gonna be reasonably priced, that is the way I'm gonna go - happily!

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06:46 Jan-30-2017

they have large number of constumers they dont care anymore they want $$$

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06:06 Jan-30-2017

At this point, my next build may not include Nvidia. Not liking the things they have been doing lately.

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04:35 Jan-30-2017

if you push out the aib companies, bad things will happen. just ask 3dfx.

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02:36 Jan-30-2017

Who suffers most from this is the customer, prices on even AIB boards are higher than the MSRP because the AIBs are trying to match the price of the FE cards.
I'm personally boycotting Nvidia until they drop this "PROFITS AT ANY COST" attitude... I'll not recommend them to anyone until then.

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23:25 Jan-29-2017

When I went to buy this 1070, the AIB cards were all sold out. So I bought the F.E. card that was in stock. Sure it cost more, but I got my card when I wanted it.

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08:43 Jan-30-2017

I don't know your situation, but maybe a wait wouldn't have changed anything for you, only benefited..?

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13:25 Jan-30-2017

I couldn't wait. My old GPU burned out.

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23:23 Jan-29-2017

well this is probably a bit of a blunt opinion but personally I consider this tactic by nvidia blatant daylight scamming. Selling the exact same chip with an equal or (in the majority of cases) worse cooling solution strapped on it but with an increased price tag just makes no sense to me no matter which way I look at it. And sadly people reward them for it by purchasing these cards just to get them a little earlier. I know that a lot of gtx 1080 owners dont really care about the difference in price from a budget point of view but I dont really think these practices should be encouraged. I dont mean to judge, blame or point fingers at someone. I just think this isnt good for us, the consumers.

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02:40 Jan-30-2017

Nvidia has adopted an extremely toxic business model over the last 10 or so years... it's no longer about competing in the market, it's all about making as much money as possible at the expense of the market and their customers..... It really is a shame they can't see what they've become.

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02:43 Jan-30-2017

It's up to us, speaking with our wallets to show them the error of their ways..... problem is, not enough people even care, they will blindly buy Nvidia products no matter how much damage they're doing to the market because they're convinced that it's the best thing out there.

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10:55 Jan-30-2017

The value, as youve mentioned is early availability (and reading the comments of those who bought FE cards, sometimes just availability).
Thats a good enough reason to pay more for something. I, like most people, wld prefer to wait, but there are those willing to pay extra for that.

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19:27 Jan-30-2017

I don't know about that increased price, Loukas. I paid £619 for my cards and when AiB cards came out they were actually more expensive than my FE cards were. Even now you're lucky to find an AiB 1080 for slightly less than £600, most are £620+ even now, half a year later. Not to mention that I bought mine the minute they became available and it wasn't until weeks later that partner cards even started popping up...


As for that inferior cooling - this is actually the better solution for me, since I'm sandwitching 4 GPUs in my rig :D

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10:25 Jan-31-2017

haha, yeah I remember that blower cooler are preferable in some situations ;).


As for the prices, I guess you are "lucky" in a way that the AIB cards cost the same? I think the prices are lower elsewhere, including my country where you can get a decent 1080 (not the super top end models admittedly but decent) for about 700 euros while the FE models start from almost 800 and go upwards where the only similarly priced cards are those hybrid/liquid cooled 1080s etc. :/

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13:05 Jan-31-2017

Interesting! I live in the UK and everyone was complaining how the FE cards are gonna be a $100 extra, etc. But the reality is that here in UK the FE cards are actually cheaper. Like I said - the price I paid at the very launch is still very good even now (about 700-720 EUR, depending on how the pound swings during this "brexit" BS).
All in all I'm not fussed and when I decide to watercool - it's gonna be easier to get a hold of a waterblock for the stock PCB :)

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22:21 Jan-29-2017

You can't blame NVIDIA for cutting the middle man, it is their product and their choice to sell it for a premium price and making larger profits. It's jut called great business. On the other hand NVIDIA should make sure not to pis of AIB.

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10:47 Jan-30-2017

I posted a question earlier in this thread but maybe people didnt see it. I was asking why nvidia/amd need the middlemen in the first place. Is it because they dont have the resources to mass manufacture GPUs? Or they just dont have the geographical reach of their aib partners?

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10:51 Jan-30-2017

Anyway, here's an upvote bud. I agree with you entirely.
Its not like nvidia is a drug company putting profits first over human lives. There is a special place in hell reserved for those kind of people.

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20:40 Jan-29-2017

Stupidy at its finest. Screw over AIB partners while they don't need them, lets see what happens when they will need them. Ngreedia's success here is simple; no other options to the consumer. The reason people scooped up FE cards was because there was literally no option upgrade wise and I am not talking about other AIB nvidia cards, AMD had-has nothing atm. When they do, this tactic wont work!

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20:44 Jan-29-2017

Barring die hard enthusiasts and fanboys the bulk of the market shops price/performance. As much as people love a company, if competitors offers more or even just what you need for less $ then most people go with that instead. Nvidia doesn't know history very well because its written clearly how this plays out. AMD's competition is around the corner, success now, but NV screwed itself long term

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18:15 Jan-29-2017

When the PC community hears about Nvidia's greedy moves, it gets enraged.
However when the new FE GPUs came out folks were like..

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22:23 Jan-29-2017

I know right, I watched the lifestream and there was an annoying girl constantly saying WHAAAAAAAAAAT WHAAAAAAAT NOOO WHAAAT?? She clearly didn't seem to understand that newer architectures should have major performance improvements.

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19:56 Jan-30-2017

Yea i saw it too. I don't know what's more pathetic, a mindless fan screaming over a gpu or a huge corporation paying someone to scream in order to grab people's attention, advertise.

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19:59 Jan-30-2017

Oops wrong comment :D The one I saw, at the 10XX series reveal, was a fan screaming "NO WAY.... YEEEAAAAHH.. YEAAAAH".

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17:48 Jan-29-2017

Guilty as charged. My GTX 1070 FE was purchased simply because it was the only version available on Amazon just two weeks after its launch & the AIB GPUs were not released yet. The person who bought it for me had a limited visit to the USA.

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16:45 Jan-29-2017

It is because WE, the consumers, buy their FE cards. WE give Nvidia many more reasons to pull off these shady stunts.

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16:37 Jan-29-2017

Step 1: Nvidia sees greedy opportunity to grab money
Step 2: Nvidia nonchalantly takes it


Its as simple as that for Ngreedia

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16:26 Jan-29-2017

i am getting sick of Nvidia's greedy way of business. however that doesn't affect my judgment when buying a new card, i would always choose the card that offers the most suitable performance/price for me, and then.. if i got stuck between names, i would happily go with AMD as it seems that Nvidia have lost theirs

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15:49 Jan-29-2017

always happier to have switched to red team...

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15:16 Jan-29-2017

Can someone enlighten me and everyone here who doesn't understand the history behind AIB partners?
Why did Nvidia/AMD need them in the first place? Why not sell direct to customers from the beginning?
Middlemen are always inefficiencies in my book.

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09:03 Jan-30-2017

i think it is because board partners offer best cooling solutions. where as the stock cooling is not always that good solution. & they
offer best overclock.

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10:40 Jan-30-2017

That's how it is right now yeah. I find it hard to believe though that amd/nvidia cant manufacture on their own a non-blower gpu that is just as good as the AIB ones. Especially now with cards sipping so little power and generating so little heat. One might even say the coolers are overkill for some of them.

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