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While Intel Corp.'s integrated graphics cores have never been able to compete successfully against integrated or discrete solutions designed by ATI/AMD or Nvidia Corp., the latest Core i-series "Sandy Bridge" processors with built-in graphics have managed to dramatically affect sales of standalone graphics processing units (GPUs) in China.

“GPU sales unit declines in May are reported at -40% to -45% month-on-month versus expectations for -10% to -15%  month-on-month. The low-end of Nvidia’s GPUs are hurt by Intel’s integrated graphics capability accompanying its “Sandy Bridge” microprocessor systems. Channel inventory in China may be four weeks now for Nvidia GPUs, versus an expected two to three weeks," wrote Michael McConnell, an analyst with Pacific Crest, in a note to clients, reports Tech Trader Daily.

It is unclear whether similar trends affect sales of discrete graphics solutions from AMD or Nvidia in other regions, but in generally the situation seems to be pretty alarming for standalone graphics adapters. It is not a secret that once AMD launches its A-series accelerated processing units that provide graphics performance akin to discrete GPUs, sales of the latter will again be hit.

The analyst estimates that China accounts for 35% of Nvidia's sales and 30% of those sales are desktop discrete GPUs. The numbers cannot be verified using the company's official filings, therefore, it is hard to make any predictions about the company's financial results.

Nvidia did not comment on the news-story.

Tags: Nvidia, Geforce, Core, Intel, Business

Discussion

Comments currently: 10
Discussion started: 06/09/11 03:45:32 PM
Latest comment: 06/13/11 10:57:06 AM
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1. 
If those "wannabe" GPUs from Intel do that, imagine Llano... With that huge market, AMD is gonna make a lot of pennies

Then again, China is a weird country with their statistics (no offense).

Cheers!
0 2 [Posted by: YukaKun  | Date: 06/09/11 03:45:32 PM]
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2. 
Well for now intel can do something in line with Nvidia and ATI's rock bottom 64bit memory crippled Videocards... but in about 6 months time those will be a thing of the past, replaced with 28nm cheap Monsters selling for around $30 to $50 bux. These will again put Intels offerings into the slidshow gaming option bracket they have always been in.

The only thing intel knows how to make is CPU's and no matter how much money they pump into videocard tech they just end up with poo, and no one wants to buy poo at any price. Go big (buy Nvidia) or go home intel.
2 1 [Posted by: vid_ghost  | Date: 06/09/11 04:18:53 PM]
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3. 
The most important piece of information is missing: What "low-end" categories of discrete GPUs sales have been affected? If the 40-45% decline is related to GPUs < $50, that's to be expected. If the low end are all the way up to $150, then it's a problem. If the declines are across all sectors, including mid-range and high-end hardware, then it's also something to worry about. Although, based on that info, it appears only "low-end" parts got affected (this is to be expected since $50 discrete GPUs aren't fast enough anyway).

It isn't really a surprise to see that the majority of the market is perfectly happy with SB level of graphics since they don't play videogames. If the success of SB and Apple's rise in the laptop space is anything to go by, it's obvious that the majority of people buying laptops do not care about 3D gaming at all. I imagine they get their "hardcore" gaming fix on consoles

Unfortunately, less and less people are buying desktop PCs which makes discrete GPUs even less relevant.

As a side-note SB graphics is simply not capable of playing modern or even older games:

http://www.techspot.com/r...gpu-comparison/page3.html

Given its performance, this likely supports my view that more and more people are shifting towards casual gaming on predominantly mobile devices (i.e., smartphones/tablets/online).
0 0 [Posted by: BestJinjo  | Date: 06/09/11 11:06:44 PM]
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- collapse thread

 
What game is old in your link? Crisys? WiC? Those were though games in their times and remain so even today. Also, nobody would enable AA on an integrated GPU, why would they do that?
0 0 [Posted by: cosminmcm  | Date: 06/10/11 12:31:34 AM]
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I am saying look at that review. You can't play any modern games on an integrated GPU. This means people who were forced to buy a $50 GPU just for normal use, are not just buying an H67 or Z68 chipset with Sandy Bridge and foregoing the low-end discrete GPU market. But that also means none of them play videogames.

Frankly NV and AMD have horrible discrete GPUs under $90. So it's also partially their fault for selling such underpowered GPUs. If you could buy an HD5770 for $50, then the situation may be different.
0 0 [Posted by: BestJinjo  | Date: 06/10/11 12:58:22 PM]
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I will run on the Older Games Like Warcraft III or Counter Strike Source.

The Report there are using Resolution 1280 to 1680. The Game will run but not at Playable Frame Rates. They Should try 640 or 800. If you ask me if i use integrated GPU for my Gaming then I said no. But for Games older Games Like Pop Cap Games, Warcraft III or even MMORPG Games RF Online it will work.
0 0 [Posted by: xentar  | Date: 06/12/11 03:34:31 AM]
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That's a good point. It will play older games and Blizzard games such as Warcraft 3.
0 0 [Posted by: BestJinjo  | Date: 06/12/11 10:30:05 AM]
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4. 
What do you expect? When there is no longer a need for a decent graphics card when we are forced to play some shitty console port with toned down graphics, So instead they just opt for an onboard gpu. sigh.... Pull your fingers out and invest some money into games developers and get them back into pc games, Games should be ported from high end pc graphics down to consoles not the other way around!
0 0 [Posted by: ozegamer  | Date: 06/10/11 12:53:58 AM]
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5. 
Hm.... Is there no market for brazos in china there no mention of it in the stat.
0 0 [Posted by: Amir Anuar  | Date: 06/10/11 11:08:43 AM]
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6. 
AMD! AMD!

Haha, people holding off intel's APU for AMD's upcoming APU which is twice as fast. Logic. That in discrete GPUs do kick ass.

0 0 [Posted by: ericore  | Date: 06/13/11 10:57:06 AM]
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