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NVIDIA Has Just Made a Terrific Move to Boost Its Gaming Business

NVIDIA’s video gaming business (NASDAQ: NVDA), has seen significant growth in the last quarter due to the launch of the RTX30 series cards. NVIDIA’s new graphics cards have caused a massive upgrade cycle due to their outstanding price-to-performance ratio. This has created huge demand that has far exceeded supply.

NVIDIA believes that the demand for NVIDIA products will continue to grow. This could impact sales and cause market share loss to Advanced Micro Devices (NASDAQ: AMD).

The graphics specialist now has a different approach to bringing its latest hardware to gamers to improve their gaming experience. They will avoid the high prices that desktop GPUs (graphics processing units) are selling due to lack of availability.

Also see: Nvidia Displays GeForce RTX3060 at CES, Expands RTX Arsenal

NVIDIA expands its laptop ecosystem

NVIDIA just announced the release of new laptops with RTX30 series graphics cards starting at $799. Gaming laptops will come with the entry-level RTX 3050T and, consequently, the RTX 3050 graphics cards. They can also be upgraded to the more powerful RTX 3080. These laptops also feature real-time ray trace and deep learning super sampling, (DLSS), image upscaling technology.

NVIDIA claims that the new laptops can deliver smooth 60 frames per second gaming at 1080p in popular titles such as Minecraft RTX or Call of Duty: Black Ops conflict. The corporate also says that the laptops are great for e-sports fans. The RTX3050 Ti laptops deliver 144 frames per second and low latency when playing popular esports such as Valiant, Overwatch, and Rainbow Six Siege.

NVIDIA claims that these laptops offer gamers with older computers an opportunity to upgrade their machines without spending a lot of money. According to NVIDIA, the RTX 3050 laptops can increase gaming performance up to four times compared with the GTX 10 series laptops. They also offer a nice entry point for gamers who want to play in competitive e-sports.

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NVIDIA now has 140 models of RTX30 series laptops. These include the more expensive models that are powered by the RTX 3060 and 3070 cards. According to NVIDIA, the number of RTX30 series-powered laptops thinner than 18mm has increased five times over the previous generation RTX20 series cards. This indicates that the company is trying to conceal all price points. This is a smart thing to do given the lucrative gaming laptop market.

There is a huge opportunity.

According to a third-party research report, the revenue from the gaming laptop market will increase from $9 billion in 2019 to $15.6 billion by 2027. This is due to the increasing adoption of esports and increased purchasing power. Jon Peddie Research predicts that the demand for ray-tracing software is going to grow rapidly at a compound annual growth rate of 53% through 2023.

NVIDIA is already the dominant market for discrete GPUs used in desktop computers. NVIDIA exited 2020 with 82% of this market, compared to AMD’s 18%. NVIDIA’s RTX30 series cards helped it regain a significant portion of the discrete GPU market from AMD, which commanded 31% of the available space in Q1 2020.

NVIDIA hopes to replicate this magic in the market for gaming laptops. It will face stiff competition from AMD, which is rapidly rising in the notebook CPU (central processor unit) market. The Ryzen 5000 mobile processors by AMD are hugely popular and are selling at twice the rate of the Ryzen 4000 series.

Also, check out: Nvidia RTX3080 Ti GPU specifications have leaked – you won’t regret it

AMD plans to make this a success by launching 150 laptop models that are compatible with the Ryzen 5500 mobile processors by 2021. NVIDIA’s concern that AMD will reportedly deploy its RX6000 mobile graphics cards into laptops starting in the fourth quarter could be alarming. This would pave the way for all AMD gaming laptops powered with their Ryzen CPUs or Radeon GPUs.

AMD has been prevented from launching its laptop GPUs due to a lack of sufficient chip supply. NVIDIA can take advantage of this situation, as the RTX30 series laptops are already on the market. NVIDIA also stated that the RTX30 series laptops will be available to local system builders as well as OEMs (original equipment makers).

The combination of lower entry-level prices and greater availability should allow NVIDIA to gain a competitive edge over AMD in the gaming laptop market. This will help NVIDIA sustain the phenomenal growth of its video games business, which accounts for half of its total revenue.

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