Nvidia sees 51% Year-on-Year drop in gaming revenue

Nvidia's Q2 earnings report showed a substantial drop off in gaming revenue. Now three months later, the Q3 earnings report is in and revenue has declined further. 

Nvidia's Q3 earnings report covers up to the 30th of October, shortly after the RTX 4090 launched. The company ended the quarter with $5.93 billion in revenue, down 17 percent compared to Q3 last year, and down 12% from the previous quarter. For the gaming segment specifically, revenues dropped by 51 percent compared to last year, and 23 percent compared to the previous quarter.

As you might expect, part of this decline in gaming revenue is due to Nvidia's continued efforts to shift RTX 30 GPUs and correct inventory levels. As this continues, Nvidia will be able to make room for more RTX 40 GPUs as new SKUs hit the market. Currently, it is rumoured that the RTX 4070 Ti will launch in January.

In a statement, Nvidia CEO, Jensen Huang said that the company is “quickly adapting” and “correcting inventory levels” to pave the way for new products. Huang also says that the ramp of its new platforms, like Ada Lovelace, are “off to a great start” and will pave the way for growth.

While gaming revenue was down, Nvidia did see growth in the data centre segment, with revenues growing by 31 percent compared to the same time last year.

Looking ahead to Q4, Nvidia expects its revenue to grow to $6 billion for the quarter, give or take 2%.

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KitGuru Says: Nvidia had another down quarter, but the company expects to see improvement. The recent launch of the RTX 4080 should help with that. 

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