The CEO of NVIDIA announced that the GeForce RTX 40 series, their next-generation GPUs, will be available very soon during its results call for Q2 FY2023. The second quarter of this year for NVIDIA was terrible, with gaming revenue falling by 44% sequentially and 33% yearly.
NVIDIA acknowledged that it raised prices on current graphics cards to clear out extra stock and make place for the coming generation of products. According to Jensen, the GPU architecture and upcoming graphics cards will be fascinating.
Our strategy is to reduce the sell-in — reduce the sell-in this quarter, and next quarter to let channel inventory correct. We’re off the highs, and the macro condition turned sharply worse. And so, our first strategy is to reduce sell-in in the next couple of quarters to correct channel inventory. We’ve also instituted programs to price position our current products to prepare for next-generation products.
Ampere is the most popular GPU we’ve ever created. It is in the top 15 most popular gaming GPUs on Steam. And it remains the best GPU in the world, and it will be very successful for some time. However, we do have exciting new next-generation coming and it’s going to be layered on top of that. And so, we’ve taken — we’ve done two things. We’ve reduced sell-in to let channel inventory correct and we’ve implemented programs with our partners to price position the products in the channel in preparation for our next generation.
All of this we anticipate were working towards a path to being in a good shape going into next year. Oka? So, that’s what our game plan is. — NVIDIA CEO – Jensen Huang (Q2 2023 Earnings Call)
What’s more significant is that Jensen also hinted that we might learn more about the upcoming gaming GPU architecture at GTC 2022 by the end of the month.
The CEO keynote is scheduled to take place on September 20. The next NVIDIA GTC will begin on September 19 and run through September 22.
In Gaming, our partners and ecosystem are responding to a sudden slowdown in consumer demand and correcting channel inventory. Still, the fundamentals of gaming are strong. We’ll get through this over the next few months and go into next year with our new architecture. I look forward to telling you more about it at GTC next month.
I look forward to next month’s GTC conference, where we will share new advances of RTX reinventing 3D graphics and gaming. — NVIDIA CEO – Jensen Huang (Q2 2023 Earnings Call)
Also read:
