Nvidia profits rise amid increasing PC demand

Nvidia enjoyed healthy profits in the third quarter, attributing the gains to increased demand for high-end PCs thanks to upcoming titles, and the current status of PCs as "dramatically better" than consoles.

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Despite all the naysayers, the PC platform is hitting an upswing. At least, according to GPU manufacturer Nvidia and their strong profits in their last fiscal quarter. The company claims it is seeing a greater demand for high-end PC gaming, but notes that this is part of the natural push and pull of PCs and consoles. For the moment, PCs are "dramatically better" than consoles.

"The strength in our GPU business in the third quarter was largely attributable to our desktop GPU products, with revenue increasing 23.0 percent over the prior quarter," Nvidia CFO Karen Burns wrote in the earnings report (via The Escapist). "This was not only due to seasonal strength for desktop GPU in the third quarter, but also the increased demand for our high-end products as consumers geared-up their PCs for new titles such as Battlefield 3, Elder Scrolls V: Skyrim and Star Wars: The Old Republic."

In a Q&A with investors, CEO Jen-Hsun Huang explained the trend. "This happens every major game console cycle toward the second half of its product life, because PC technology advances on a regular basis instead of once every seven to ten years," he said. "And so you could imagine how PC technology is dramatically better than a game console today, and you're starting to see that now with a new generation of games that are coming out, such as Battlefield 3."

The unspoken implication, though, is that we're nearing the next console cycle, when manufacturers like Sony and Microsoft are likely to take a loss on their hardware to get their boxes into homes. That would make the whole cycle start anew, as consumers adopt the relatively cheap console alternative. Still, it's nice to hear news that can serve as your answer next time someone claims that PC gaming is dead.

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  • reply
    November 11, 2011 10:15 AM

    Steve Watts posted a new article, Nvidia profits rise amid increasing PC demand.

    Nvidia enjoyed healthy profits in the third quarter, attributing the gains to increased demand for high-end PCs thanks to upcoming titles, and the current status of PCs as "dramatically better" than consoles.

    • reply
      November 11, 2011 10:32 AM

      I own a pretty good PC and a PS3. However, I only buy PS3 exclusives on the PS3. Other than that I will always purchase on the PC. Always have and always will.

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        November 11, 2011 10:54 AM

        PS3 got killer exclusives and PC where multi-platform at its best.

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          November 11, 2011 11:17 AM

          the only "killer" exclusive the PS3 has is Uncharted. the rest of the exclusives are a yawn. and yes i own a ps3 since 2007.

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            November 11, 2011 11:31 AM

            little big planet? metal gear solid? god of war? infamous? just off the top of my head.

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              November 11, 2011 11:37 AM

              MGS4 i forgot. But other than that yea, pretty much a yawn.

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              November 11, 2011 12:18 PM

              Heavy Rain, Killzone, Resistance, ICO/SOTC, Demon's Souls, Flower, Heavenly Sword (?), The Last Guardian.

              An amazing list of games that you can only play on PS3.

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                November 11, 2011 12:31 PM

                I'd agree with DS (which is no longer exclusive), Flower, Journy and The Last Guardian (assuming it is good).

                Heavy Rain was outright bad, as the LP of it showed from Something Awful.

                Killzone, Resistance and Heavenly Sword were mediocre in their respective genres. ICO/SOTC was a PS2 game, not PS3 exclusive (excluding the HD remake, of course.)

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                  November 11, 2011 1:44 PM

                  The HD remake was what I was referring to for Ico/SOTC. All the PS2 games you can get on PSN are a pretty big selling point too.

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        November 11, 2011 12:11 PM

        ha same here. or console exclusives (RDR)

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        November 11, 2011 6:01 PM

        Same. Kinda want a 360 for a few of its exclusives but I have enough to play!

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      November 11, 2011 10:32 AM

      Good to hear, hope it stays that way.

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      November 11, 2011 11:03 AM

      But PC gaming is dead.

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      November 11, 2011 11:04 AM

      yay bf3

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      November 11, 2011 1:39 PM

      The only people who say PC gaming is dead or it's a thing of the past are console lovers.

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        November 11, 2011 2:49 PM

        The only people who say it are PC gamers that are butthurt over a random guy saying it was dead in 2005. I don't think anyone really thinks it's dead.

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          November 11, 2011 2:56 PM

          [deleted]

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            November 11, 2011 7:36 PM

            Big budget PC only titles are dead for the most part.

            Yeah there are exceptions like some MMO's or LoL.

            I always felt that statement pertained to the glory days of the late 90's when consoles couldn't run PC games.

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      November 13, 2011 5:21 AM

      it could just be that this generation of consoles has been around for so long, that console players are bored and looking to spend money on the next best thing. Kind of ironic when you think about it.

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