Nvidia’s Q2 earnings won’t come out for another two weeks, but the company has dropped its preliminary numbers today and the results are not looking particularly good for its gaming business. Its gaming revenue is reported at $2.04 billion, a staggering 33.33 percent decrease from the previous year’s $3.06 billion.
The shortfall mirrors other gaming hardware companies, including Logitech, which reported a 12 percent drop compared to the same quarter last year, reflecting peak pandemic changes where consumers are done investing in all kinds of home equipment for work, play, and even exercise. And gaming sales as a whole have dropped 13 percent in Q2 to $12.35 billion compared to last year, according to market research firm NPD.
One anomaly for this period is AMD, which actually increased its gaming revenue 32 percent year over year, riding mostly on game console chipset sales as the Xbox series X / S and PlayStation 5 have become more widely available.
For Nvidia, its numbers show a rollback in consumer buying patterns toward 2020, when the company reported just $1.65 billion in gaming revenue in the same quarter — making it a 23.66 percent increase today in comparison. But with the GPU shortage suddenly over, cryptocurrency miners driven out of the picture by the combination of plunging prices and potential technology changes, and a new generation of 40-series graphics chips just around the corner, Nvidia is once again in the position of trying to entice gamers with free games if they upgrade their cards.