Geforce RTX: How well are gaming sales going?

Nvidia admitted that it did not have a silver bullet against high graphics card prices and poor availability. But how does this affect sales in this area?

Geforce RTX: How well are gaming sales going?

Photo Credits: Nvidia / promo

Nvidia has published the figures for the third fiscal quarter of 2022, which ended at Nvidia at the end of October. PC gamers are likely to be particularly interested in gaming revenues.

Nvidia: massive growth compared to the previous year

Overall, Nvidia has - of course - set new records for sales and profits. In the previous year, there was a total of 4.72 billion US dollars in sales, now it creates 7.10 billion US dollars in the quarter. That means 50 percent more sales. Net profit is also rising sharply, by 84 percent: USD 2.67 billion compared to USD 1.39 billion. The gaming segment is not growing the most, but a 42 percent increase in sales compared to the previous year (3.32 billion versus 2.27 billion) is impressive. Compared to the previous quarter, there is at least an increase of 5 percent on the books. However, the share of the revenue from gaming sinks to below 50 percent.

Most recently, Nvidia admitted that it did not have a silver bullet against high graphics card prices. Huang said in an interview that the year 2022 will also be determined by the fact that demand will "by far" exceed supply. And so it is also stated in the transcript to the new financial figures that the demand was strong in all areas, while the supply of desktop GPUs was further increased. Nvidia believes "inventory levels on the channel remain low". Translated, this means: Whatever goes in as goods is resold directly. However, Nvidia promises to "continue to work hard to increase supply for the overwhelming demand this holiday season".

Nvidia The aim is to secure growth for the coming years as well

The statements made on the side are interesting. Nvidia has estimated that a quarter of the installed base of Geforce graphics cards now consists of RTX GPUs. No wonder that one sees optimism for the future here: "The RTX possibilities continue to grow with the growing market of gamers, creatives, designers and now also the professionals who build home workstations," said Nvidia.

 The CFO Colette Kress provides some insight into long-term purchase and delivery agreements. Not only do they procure "what we need this quarter, but also what we need next year, and here, too, we are planning growth for next year". Nvidia makes long-term supply purchases, i.e. capacity agreements with many different suppliers. In the quarter, they made a payment of approximately $ 1.6 billion, representing a total long-term capacity agreement of approximately $ 3.4 billion. The aim is to secure growth for the coming years as well.