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NVIDIA CEO says GeForce is like a game console

NVIDIA CEO says he thinks 'GeForce is a game console'
By: Anthony Garreffa | Video Cards News | Posted: May 15, 2017 12:07 am

NVIDIA CEO and founder Jen-Hsun Huang has compared GeForce graphics cards to consoles in a recent post-earnings investor Q&A, when he was probed on a question regarding NVIDIA seeing the numbers of gamers and GeForce products growing, and whether they could continue to push out premium products.

 

nvidia-ceo-geforce-game-console_23

 

Huang replied with: "The average selling price of the NVIDIA GeForce is about a third of a game console. That's the way to think about it. That's the simple math. People are willing to spend $200, $300, $400, $500 for a new game console, and the NVIDIA GeForce GPU PC gaming card is on average far less".

 

He continued: "There are people who just absolutely demand the best. And the reason for that is because they're driving a monitor or they're driving multiple monitors at a refresh rate well beyond a TV. So if you have a 4K or you want 120 hertz or some people are even driving it to 200 hertz, those kind of displays demand a lot more horsepower to drive than an average television, whether it's 1080p or 4K at 60 frames a second or 30 frames a second. And so the amount of horsepower they need is great. But that's just because they just really love their rig, and they're surrounded in it, and they just want the best. But the way to think about that is ultimately that's the opportunity for us. I think GeForce is a game console. And the right way to think about that is at an equivalent ASP of some $200 - $300, that's probably potentially an opportunity ahead for GeForce".

 

As for the adoption of NVIDIA graphics cards in the lower-end market, NVIDIA definitely needs to better compete against AMD and their Radeon RX 400 and rebranded RX 500 series cards. Huang compared this to consoles, as he admitted the profitability of the GeForce business is synonymous with gamers, just like Xbox, PlayStation or Nintendo platforms.

 

He added: "When we think about GeForce, these are the parameters involved. How much of our installed base has upgraded to Pascal? How much of our installed base is growing? How is gaming growing overall? What are the driving dynamics of gaming, whether it's team sports or MOBA or using games for artistic expression? It's related to the AAA titles that are coming out. Some years the games are just incredible. Some years the games are less incredible. These days the production quality of the games have just become systematically so good that we've had years now of blockbuster hits. So these are really the dimensions of it".

 

"And then it's overlaid on top of it with some seasonality because people do buy graphics cards and game consoles for Christmas and the holidays, and there are international holidays where people are given money as gifts and they save up the money for a new game console or a new game platform. And so in a lot of ways our business is driven by games, so it's not unlike the characteristics of the rest of the gaming industry".

NEWS SOURCES:Wccftech.com, Seekingalpha.com

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