×
You will be redirected back to your article in seconds

Nvidia Drops Projected Q4 Rev by Half Billion After ‘Extraordinary, Unusually Turbulent, and Disappointing Quarter’

Nvidia updated its financial guidance to reflect a $500 million drop for Q4 2019 after reviewing weaker than expected sales in gaming and datacenter divisions, according to a news release Monday.

Previous guidance projected revenue of $2.7 billion for the fourth quarter, which has now been updated to $2.2 billion to stay in line with forecasted sales.

For gaming, the excessive inventory of mid-range GPUs leftover from the crypto-currency mania is partly to blame for weal revenue, something that the company had accounted a “sequential decline” for in its projections. Basically, back when Bitcoin and other digital currency mining was all the rage, Nvidia attempted to keep up with the demand for graphics cards. Now, the company has excess inventory left unsold.

What was not expected was the Chinese gaming market’s decline. Lower than expected sales due to “deteriorating macroeconomic conditions,” which was keenly experienced in China, impacted the demand for Nvidia GPUs. Perhaps also of note is the increased gaming regulations in China in the past year, and the freeze on approval for new online games which may have impacted demand for new graphics cards— although this is not noted in the news release.

Nvidia’s gaming sales are also getting a decrease in projected sales due to a lower than expected demand for high-end GPUs which use Nvidia’s Turing architecture, which the company speculates may be due to customers delaying their purchase waiting for a price drop and “further demonstrations of RTX technology in actual games.”

Popular on Variety

Datacenter revenue was also a disappointment for Nvidia. A “number” of deals Nvidia had in the works didn’t pan out in the last month of Q4, as “customers shifted to a more cautious approach,” according to the news release. Still, the company remains hopeful that expanding market opportunity in artificial intelligence (AI) and high performance computing still leave it in competitive standing in the market.

Jensen Huang, founder and CEO of Nvidia, called Q4 an “extraordinary, unusually turbulent, and disappointing quarter.”

“Looking forward, we are confident in our strategies and growth drivers,” Huang said. “The foundation of our business is strong and more evident than ever – the accelerated computing model Nvidia pioneered is the best path forward to serve the world’s insatiable computing needs. The markets we are creating – gaming, design, HPC, AI and autonomous vehicles – are important, growing and will be very large. We have excellent strategic positions in all of them.”

An earnings call for Nvidia is scheduled for Feb. 14.

More Gaming

  • Riot Games

    Riot Games to Pay $10 Million to Settle Gender-Discrimination Lawsuit

    Riot Games, developer of “League of Legends,” will fork over at least $10 million to settle a class-action lawsuit filed on behalf of women employees alleging the company’s “bro culture” resulted in systemic gender discrimination. Terms of the settlement in the case, reached in August, were revealed in court documents filed last week in California [...]

  • Dreamscape_Dragon vr

    Dreamscape Gets ‘DreamWorks Dragons Flight Academy’ VR Experience (EXCLUSIVE)

    Location-based virtual reality (VR) startup Dreamscape has teamed up with DreamWorks Animation to launch a new “How to Train Your Dragons” experience at its flagship Westfield Century City VR center in Los Angeles later this month. The 11-minute “DreamWorks Dragons Flight Academy” experience allows up to 8 participants to hone their dragon-flying skills together, and [...]

  • YouTube logo

    YouTube Eases Restrictions on 'Simulated' Violence in Gaming Content

    YouTube announced a change to its content guidelines that will be more permissive in allowing depictions of violence in video-game content — as long as it’s not the sole focus of a video. Starting on Dec. 2, YouTube said, scripted or simulated violent content found in video games will be treated the same as scripted [...]

  • Disney’s Frozen 2 and Laika’s Missing

    'Frozen 2,' 'Missing Link' Lead 47th Annie Award Nominations

    Disney’s “Frozen 2” and Laika’s “Missing Link” led the 47th Annie Award nominations Dec. 2 with eight each and will battle it out for best animated feature along with DreamWorks Animation’s “How to Train Your Dragon: The Hidden World,” Netflix’s “Klaus” and Pixar’s “Toy Story 4” when the ceremony is held on Jan. 25 at [...]

  • Black Friday Deals: Oculus Rift, PlayStation

    The Best Black Friday Deals for VR Headsets, Apps & Games

    Getting your own virtual reality (VR) setup at home used to be costly, requiring not only an expensive headset but also a full-blown gaming PC. Not anymore: The latest generation of all-in-one devices has made VR a lot more affordable, and deep discounts for the holiday season serve as another incentive to finally make the [...]

  • Beat Saber Acquired by Facebook, Company

    Facebook Buys the Maker of the Popular VR Game 'Beat Saber'

    Facebook has acquired Beat Games, the maker of the popular virtual reality (VR) music game “Beat Saber”, the social media giant announced Tuesday. Beat Games will operate as an independent studio under Oculus Studios, and continue to support “Beat Saber” on all existing platforms, according to a blog post penned by Facebook AR/VR director of [...]

  • Kris Bowers, Alan Silvestri, and Catherine

    Alan Silvestri, Cynthia Erivo, Bebe Rexha Among Hollywood Music in Media Award Winners

    The 10th annual Hollywood Music in Media Awards rewarded a diverse crop of composers, songwriters and music supervisors who contributed to film, TV and videogames over the last year, from scorers Alan Silvestri, Hildur Guðnadóttir, Marco Beltrami and Michael Abels to tunesmiths Cynthia Erivo, Bebe Rexha and the Avett Brothers to Quentin Tarantino’s longtime music sidekick, [...]

More From Our Brands

Access exclusive content