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BFG Technologies, the company primarily known for its Nvidia GeForce-based graphics cards, said on Tuesday that it would exit graphics cards business in an attempt to concentrate on its high-end gaming systems and power supply units. The decision may become a blow to both Nvidia Corp. and users of BFG since the company has been known for exclusive high-end graphics solutions.

“After eight years of providing innovative, high-quality graphics cards to the market, we regret to say that this category is no longer profitable for us, although we will continue to evaluate it going forward. We will continue to provide our award-winning power supplies and gaming systems, and are working on a few new products as well,” said said John Slevin, chairman of BFG Technologies.

The company will continue to sell its line of BFG Tech power supplies as well as Deimos gaming notebooks and Phobos gaming desktops. Nowadays even high-end PCs are sold at relatively thin margins, but it looks like BFG’s graphics business suffered from the economic downturn even more.

Although BFG, just like many of its rivals, concentrated mostly on high-end graphics solutions, it looks like the recent delays of Nvidia’s GeForce GTX 400-series premium graphics chips as well as other Fermi-generation solutions has made it impossible for the company to make profits selling graphics cards. In addition, the company might also suffer from dropping popularity of Nvidia-branded solutions due to increased sales of ATI’s DirectX 11 lineup amid increased competition between companies like BFG, EVGA or Palit.

BFG will continue to offer RMA, telephone and email support for qualified BFG Tech graphics card warranty holders, but will no longer be bringing new graphics card products to market.

“I’d like to stress that we will continue to provide RMA support for our current graphics card warranty holders, as well as for all of our other products such as power supplies, PCs and notebooks,” concluded Mr. Slevin.

Tags: BFG, Nvidia, Geforce, Fermi, Business, ATI, AMD

Discussion

Comments currently: 3
Discussion started: 05/19/10 03:11:55 AM
Latest comment: 05/20/10 07:00:50 AM

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1. 
"After eight years of providing innovative, high-quality graphics cards to the market, we regret to say that ... "

I don't really know about the "innovatove" part... they were mostly reference designs and, sometimes, cheaper alternatives sold and the same reference design price leveles.
0 0 [Posted by: East17  | Date: 05/19/10 03:11:55 AM]
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2. 
Thats a real thumbs up for fermi................not, and the last 4 years have just been mainly re-spins of old tech

Maybe time to consider ATI cards
0 0 [Posted by: alpha0ne  | Date: 05/20/10 01:58:14 AM]
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3. 
...it impossible for the company to make profits selling graphics cards.


The "limited" or "true" Life-Time Warranty on video cards does have a negative affect on profit margins. It is good for the consumer but bad for the company since consumer are replacing their video cards under warranty instead of buying new video card(s). Thus, BFG probably banked on long-term customer loyalty. When the consumer finally decided to upgrade, there are other competitors in the market boasting how better performing their video card is, it is hard to stay loyal to one brand.

I still have my pair of BFG 7800GTX running on my old computer...never and an issue with them other than cleaning the dust out when ever it collects.
0 0 [Posted by: lbot  | Date: 05/20/10 07:00:50 AM]
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