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NVIDIA CEO comments on GeForce Partner Program
Nvidia recently held a conference call on their latest financial results, one person in the call was Jen-Hsung Huang, and he is the CEO of Nvidia. He was asked about the cancellation of the Geforce Partner Program in relation to how Nvidia came to that decision and what the possible implications are on market share.
Jen-Hsung Huang 'The majority of the ecosystem embraced it, but some people hated it'. In his believe one gaming brand (say ROG) per videocard brand (NVIDIA) would be more transparent. More graphics cards series (Gaming / ROG / AMD/ NVIDIA) and brands under one label (ROG) would be less transparent. Have a read on his reaction below as spotted by our colleagues from HWI. It's a comment, albeit a small one:
Toshiya Hari - Goldman Sachs & Co. LLC
Great. Thank you so much. Jensen, I had a question regarding your decision to pull the plug on your GeForce Partner Program. I think most of us read your blog from last Friday. I think it was, so we understand the basic background. But if you can describe what led to this decision and perhaps talk a little bit about the potential implications, if any, in terms of your ability to compete or gain share. That will be really helpful. Thank you so much.
Jen-Hsun Huang - NVIDIA Corp.
Yeah. Thanks for your question, Toshiya. At the core, the program was about making
sure that gamers who buy graphics cards knows exactly the GPU brand that's inside. And the reason for that is because, we want gamers to – the gaming experience of a graphics card depends so much on the GPU that is chosen.
And we felt that using one gaming brand, a graphics card brand, and interchanging the GPU underneath causes it to be less – causes it to be more opaque and less transparent for a gamer to choose the GPU brand that they wanted. And most of the ecosystem loved it. And some of the people really disliked it.
And so instead of all that distraction, we're doing so well. And we're going to continue to help the gamers choose the graphics cards, like we always have, and things will sort out. And so we decided to pull the plug because the distraction was unnecessary and we have too much good stuff to go do.
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H83
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#5546945 Posted on: 05/15/2018 03:56 PM
The problem is that is a common practice in the business world. Every company treats their best customers in a different way than they treat the other customers. And this involves better payment conditions, better discounts, better support and priority for their products. For example in the car industry there´s a common joke regarding luxury brands like Porsche and Ferrary and their special edition cars released in limited conditions, that more important that having the money to buy them is having the garage already filled with their cars because a new customer to the brand has zero chances of buying a limited edition car from them... Basically they are allocating their limited products to their best customers...
So nothing new about this kind of practices...
Remember people, GPP wasn't just a marketing thing. It was also a way for brands to get first dibs on parts, and elevated priority of Nvidia's support. It screws over the smaller AIB companies.
The problem is that is a common practice in the business world. Every company treats their best customers in a different way than they treat the other customers. And this involves better payment conditions, better discounts, better support and priority for their products. For example in the car industry there´s a common joke regarding luxury brands like Porsche and Ferrary and their special edition cars released in limited conditions, that more important that having the money to buy them is having the garage already filled with their cars because a new customer to the brand has zero chances of buying a limited edition car from them... Basically they are allocating their limited products to their best customers...
So nothing new about this kind of practices...
Monchis
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#5546952 Posted on: 05/15/2018 04:06 PM
And they waited until gaming branded lines started outselling regular stuff by considerable margins, what a coincidence.
Ps.- And what happened to focus group educative comments on this matter?
And they waited until gaming branded lines started outselling regular stuff by considerable margins, what a coincidence.
Ps.- And what happened to focus group educative comments on this matter?
Agent-A01
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#5546966 Posted on: 05/15/2018 04:42 PM
If someone can't tell those two apart then that person has no business entering a PC hardware store and even less business opening a PC case and trying to install anything. That's why Huang's excuse is nothing but a lousy excuse when the real purpose was obviously trying to limit competition. When this whole thing became news back in the day, I didn't care so much about it as those brands don't matter so much to me, but once it was revealed how draconian Nvidia was about it, who could anymore condone it?
You know, people can even find a yoghurt with no/low fat or normal fat among the selection in a grocery store. Maybe Huang can't, but most people can. I'm pretty sure they can choose the GPU they want as well without the Nvidia CEO holding their hand.
I don't know what planet you are on, but here on planet earth there are a lot of stupid people not to mention people who want to get into games but have zero idea about technology.
So yes, people will and do think those two cards are the same by looking at them.
Clearly you do not deal with people in the tech world; more people are technology illiterate than you think.
If someone can't tell those two apart then that person has no business entering a PC hardware store and even less business opening a PC case and trying to install anything. That's why Huang's excuse is nothing but a lousy excuse when the real purpose was obviously trying to limit competition. When this whole thing became news back in the day, I didn't care so much about it as those brands don't matter so much to me, but once it was revealed how draconian Nvidia was about it, who could anymore condone it?
You know, people can even find a yoghurt with no/low fat or normal fat among the selection in a grocery store. Maybe Huang can't, but most people can. I'm pretty sure they can choose the GPU they want as well without the Nvidia CEO holding their hand.
I don't know what planet you are on, but here on planet earth there are a lot of stupid people not to mention people who want to get into games but have zero idea about technology.
So yes, people will and do think those two cards are the same by looking at them.
Clearly you do not deal with people in the tech world; more people are technology illiterate than you think.
xrodney
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#5546968 Posted on: 05/15/2018 04:55 PM
I'm not saying AMD doesn't pay for marketing - I'm saying they don't pay for AIB brand marketing. AMD doesn't pay ASUS to market republic of gamers, they pay ASUS to market AMD graphics cards. And even if they do pay for ROG, it just furthers my point that the ROG BRAND matters for sales - despite what everyone on here is saying.
Because the existing branding matters? Which is my point? lol.. my argument is that the branding matters, which is why Nvidia wants it and AMD doesn't want to be removed from it. But everyone in here is arguing that it doesn't matter - that gamers are smart enough to know which card to buy. Obviously some gamers are - but I think that branding matters or else these companies wouldn't be dumping so much money to maintain them.
Again, I think what GPP did was bad.. but I think it was bad because AMD losing that brand does damage their sales, because some portion of gamers really do think ROG has faster or quieter fans, or whatever.
I can agree with that...partialy.
But, main problem here was that Nvidia wanted usurp AIB established brands for themself which on its own is bad, but on top of that "threaten" if they dont.
If Nvidia wanted to as they called it "stop confusion" about what GPUs you buy, all that was needed is to ask AIBs to make it more visible.
There would not be problem to have Green themed ASUS ROG XXX for Nvidia cards and Red themed ASUS ROG YYY sub brands and packaging, instead they went super greedy and wanted to grab AIBs established brands for themselfin try to push AMD sales down and as well cost AIBs more money for promoting separate brands.
Seriously, any ideas like this should be shot in the heart and one more to head, just to make sure they stay down.
I'm not saying AMD doesn't pay for marketing - I'm saying they don't pay for AIB brand marketing. AMD doesn't pay ASUS to market republic of gamers, they pay ASUS to market AMD graphics cards. And even if they do pay for ROG, it just furthers my point that the ROG BRAND matters for sales - despite what everyone on here is saying.
Because the existing branding matters? Which is my point? lol.. my argument is that the branding matters, which is why Nvidia wants it and AMD doesn't want to be removed from it. But everyone in here is arguing that it doesn't matter - that gamers are smart enough to know which card to buy. Obviously some gamers are - but I think that branding matters or else these companies wouldn't be dumping so much money to maintain them.
Again, I think what GPP did was bad.. but I think it was bad because AMD losing that brand does damage their sales, because some portion of gamers really do think ROG has faster or quieter fans, or whatever.
I can agree with that...partialy.
But, main problem here was that Nvidia wanted usurp AIB established brands for themself which on its own is bad, but on top of that "threaten" if they dont.
If Nvidia wanted to as they called it "stop confusion" about what GPUs you buy, all that was needed is to ask AIBs to make it more visible.
There would not be problem to have Green themed ASUS ROG XXX for Nvidia cards and Red themed ASUS ROG YYY sub brands and packaging, instead they went super greedy and wanted to grab AIBs established brands for themselfin try to push AMD sales down and as well cost AIBs more money for promoting separate brands.
Seriously, any ideas like this should be shot in the heart and one more to head, just to make sure they stay down.
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I'm curious to know who exactly Huang thinks he is fooling? Does he think gamers are idiots who cannot distinguish between "GeForce GTX" and "Radeon RX"? Frankly, I find it insulting how he continues with the blatant lie that the GPP was about "transparency".
Seriously now, does Huang want to alienate and offend the gaming community? Seems that he's not interested in rebuilding that bridge and re-establishing that trust with gamers. Still spreading fud, still playing the victim, and still no apology.