Nvidia has released new gaming processors every single year since the 1990s. That streak ends now. 2026 marks the first year without a fresh GeForce lineup since the company’s founding.
“The gaming segment is no longer the driving force of the company. There was one point when it clearly was,” said Stacy Rasgon of Bernstein Research as reported by CNBC.
The opening looked perfect for competitors. Nvidia made its name selling graphics processing units that let video games run faster and look better. When the company launched its first GPU in 1999, the GeForce 256, it nearly went bankrupt making it happen.
Gamers saved the company by snapping up the new technology. Now those early supporters feel abandoned as Nvidia chases bigger profits elsewhere.
The company’s computer and networking division, which makes AI chips, averaged a 69% profit margin over three years. The graphics segment aimed at gamers only managed 40%. A single Blackwell AI chip costs up to $40,000, while gaming cards sell for $299 to $1,999.
AMD and Intel can’t take the advantage
This should have opened the door for rivals AMD and Intel to win over frustrated gamers. Instead, both face the exact same problem strangling Nvidia’s gaming business: a severe shortage of computer memory chips.
AMD’s Radeon RX 9000 series saw price increases between 10% and 17% across all models. The flagship Radeon RX 9070 XT jumped 17%, while the Radeon RX 9060 XT 8GB rose a more modest 10%. The Radeon RX 9060 XT 16GB landed at 14% because it carries twice the memory.
David McAfee, who oversees AMD’s Radeon division, told Gizmodo during CES 2026 the company works closely with memory suppliers to keep prices reasonable for everyday buyers. But he admitted sustaining these efforts remains unrealistic amid the ongoing shortage.
Intel faces even worse setbacks. The company planned to launch an Arc B770 gaming card built on its BMG-31 chip with 32 Xe Cores and 16GB of memory. Reports pointed to a potential first quarter 2026 release. That launch is now cancelled.
Instead, Intel will release the Arc Pro B70 workstation card with 32GB of memory, aimed at AI work rather than gaming. Intel scrapped the gaming version due to a “lack of financial viability.” With memory shortages and massive price hikes, it no longer makes sense to release an affordable card.
Memory shortage cripples entire industry
Behind all this sits a brutal reality: computer memory is scarce and getting worse. Nvidia plans to cut gaming GPU production by up to 40% because it cannot get enough memory chips. As reported by Cryptopolitan Micron has warned of near-permanent memory shortage affecting the industry.
Research firm Gartner predicts the shortage will push computer prices up 17% this year, causing PC shipments to drop 10.4%. The firm expects entry-level consumer PCs to disappear entirely by 2028.
“If there is push-outs or delays on the gaming roadmap, it’s probably in large part that they probably can’t make the cards anyways because it’s hard to get the memory,” Rasgon explained. “Every bit of memory that’s out there, I think is really getting prioritized to AI compute.”
Making high-performance AI processors requires High Bandwidth Memory, which takes about four times as many silicon wafers to produce compared to regular memory chips. This is why memory problem hits all chipmakers equally.
“That dynamic is starving the overall industry of the type of memory that is traditionally used for more consumer type applications. It’s just not available,” Rasgon said.
“If Nvidia can’t get the memory, AMD ain’t going to get the memory,” he added.
Gamers hoped competition would save them when Nvidia shifted focus. Tim Gettys, who co-hosts the Kinda Funny Games podcast, said AMD and Intel could have filled the gap.
“If they’re making three times the money and the stockholders are three times happier, then yeah, I do think that they will abandon gaming despite it being what got them there,” Gettys said. “There’s a clear favorite,” Gettys noted. “If you’re playing on PC, you’re going to want an Nvidia card.”
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Source: https://www.cryptopolitan.com/can-amd-and-intel-capitalize-on-nvidias-gaming-exodus/
