NVIDIA's earnings in the game division decreased due to the decline in demand for GPUs, CEO remarked on GPU price adjustments
On Monday, August 8, 2022, NVIDIA announced its financial results for the second quarter of fiscal year 2023 (May 2, 2022 to July 31, 2022). Revenue for the same period was 6.7 billion dollars (about 903.6 billion yen), which was significantly lower than the revenue forecast due to the decrease in unit sales of gaming-related products. In addition, CEO Jen Sun Huang's remarks suggested that GPU prices would continue to decline.
NVIDIA Announces Preliminary Financial Results for Second Quarter Fiscal 2023 | NVIDIA Newsroom
When NVIDIA announced its financial results for the first quarter of fiscal year 2023, it forecast revenue of $8.1 billion (about 1.925 trillion yen) for the second quarter of fiscal year 2023, but the actual revenue was $6.1 billion. , decreased by 19% from the previous quarter and increased by 3% from the previous year.
Looking at the revenue by department, the revenue of the game department decreased by 44% from the previous term and decreased by 33% from the previous year to 2.04 billion dollars (about 275.2 billion yen), and the revenue of the data center department increased by 1% from the previous term. It is 3.81 billion dollars (about 514 billion yen), an increase of 61% from the previous year.
NVIDIA cites a decrease in sales of game-related products as the reason for the sluggish overall revenue. In addition, NVIDIA CEO Jen Sun Huang said, ``Since the economic situation that affects sales (of game-related products) is expected to continue, we have taken measures to adjust prices and inventories in cooperation with gaming partners. ' said.
GPUs, NVIDIA's flagship product, have continued to be bought up for mining because their computational processing characteristics are suitable for mining virtual currencies, and shortages and soaring prices have become the norm. However, as the price of all virtual currencies began to decline around November 2021, mining demand also declined, and GPUs began to be distributed at relatively low prices. Technology media Ars Technica pointed out that ``the decrease in sales is thought to be due to the decrease in mining demand due to the crash of the virtual currency,'' while pointing out that Mr. Huang is referring to the price adjustment. As a basis, he said, ``There is a possibility that the price of GPU will continue to decline,'' and expects the price of GPU to decline.
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in Hardware, Posted by log1o_hf