NVIDIA announced the latest quarterly earnings report, as expected:from
Revenue fell 31% to $ 2.2 billion, and net income fell 68% to $ 394 million from the same period the previous year. The key to NVIDIA's revenue decline and profitability is GPU games, with revenues down 39% from $ 1,723 million to $ 1,055 million.
Are NVIDIA game display cards unsold? This is true of financial statements. In the past three seasons, NVIDIA was unable to benefit from the mining card market The RTX 20 series of graphics cards introduced last year was praised by NVIDIA CEO Huang Renxun as the biggest change in GPU architecture in 13 years, due to the realization of real-time rendering ray tracing. This is a revolution in the quality of the game, but the price of the RTX 20 series display cards has increased sharply, and the price is not affordable to general players. Therefore, even with high prices, NVIDIA's gross profit margin in the new season has dropped to 59.2%.
However, NVIDIA's latest share price has not dropped dramatically, but has risen slightly, in the long run, NVIDIA's business has improved, and this quarter's performance has improved compared to the previous quarter. At the same time, NVIDIA also gave investors confidence in the revenue conference, announcing that they would win an additional 1 billion gamers in the future, but one billion of these players were not achieved by buying NVIDIA GPU games, but with cloud games – GeForce Now.
The word cloud game must be familiar to everyone. The biggest advantage is that regardless of platforms and systems, cellphones, tablets, computers and Macs can all be connected to cloud games. Game progress is the same, you want to play anytime. Can play, no need to have a strong game console, save money.
NVIDIA has been pushing GeForce Now cloud gaming services for several years, but GeForce Now is currently being launched primarily in the US, Canada, Europe and Japan for $ 7.99 per month.
After the cloud game was launched, NVIDIA extra 1 billion players shouldn't be a problem, but cloud gaming has grown for almost 10 years. There are still many unresolved problems, such as network delays, game performance, etc. Unresolved, it's difficult to attract a large number of gamers.
It is worth mentioning that Google recently announced the launch of the cloud gaming platform – Stadia, with a performance of up to 10TFLOPS, claiming to run 4K HDR games with a maximum performance of 60FPS, but the GPU used by Google is a special version of AMD RX Vega graphics card, Intel Xeon CPU .