Crypto Mining GPU Sales Continue Decline As Gamers Find Cheaper Graphic Cards
Mining profits were great in 2017 and graphics card sales followed suit. Despite the high profits, mining has experienced some criticism among the PC gaming community because there has been an influx of opportunistic miners who are looking to profit from the profits as well.
However, there is some doubt that 2018 will bring the same concerns, especially due to the lack of graphics card profits. This year, Nvidia reported a “substantial decline” in revenue and it is likely due to the declining sale of hardware to cryptocurrency miners.
Nvidia CFO Colette Kress reported to Coindesk that,
“GPU business revenue was $2.66 billion, up 40 percent from a year earlier.” Therefore, even though Nvidia is not experiencing financial issues, it is “down 4 percent sequentially.”
The decline of mining rig sales is offset by an increase in the sale of Nvidia’s traditional markets, gaming, datacenter services, and professional visualization applications.
“Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward.”
When it comes to gamers, the rising price of mining cards and the high demand has led to some serious frustrations. As for Nvidia, it continues to maintain that mining has not impacted its business, and that it has been “hard to qualify” the how many miners and gamers are purchasing its hardware.
Nvidia also maintains that the high demand for cards is due to gamers, but it seems that the revenue decline due to miners is showing otherwise.