Affiliate programs in the hardware and any, industry are nothing new. Nvidia, at the start of March, launched a new Geforce Partner Program, however, is causing a stir, allegations now have risen that Nvidia wants to exclusively bind companies and brands to GeForce.
So a story broke earlier yesterday at hardocp, I was out all day and decided to post this a little later as I wanted to dig a little deeper into the implications and accusations. So, let’s start by saying this, the sources of the story that broke over there, all have chosen to remain anonymous. But considering the relationship that they have with AMD the last year (Owner Bennett has even been presenting at recent AMD conferences), it is AMD that instigated this story and fed the story to them (as is now reported in their coverage). One thing they mention seems a bit inconsistent (as far as we can check), AMD has not been ‘shopping’ this story to other websites as far as we know it. Guru3D and other media (I checked with a couple) certainly have not heard from AMD on or about this matter. That said, if the story is correct, the sources do not even matter, as it is a gnarly thing which needs to be shared by media in an effort to get some exposure.
So what is this all about? Nvidia presented its new/updated GPP (GeForce Partner Program) a normally positive program “to better serve gamers”, early in March 2018. Basically, Nvidia partners will get NVIDIA TLC when they join up, more of that in a lower paragraph. Nvidia in its latest GPP talks a lot about branding, the program is open and ‘free for anyone to join’ is also mentioned to be transparent and non-exclusive. However, here’s where the assumption now has risen, AIBs and OEMs have been reluctant to talk about the new GPP as they are a bit scared about the ramifications. Basically as a partner, if you don’t join up in the GPP, as a company, you’ll be placed in a lower to more ‘poor’ position with Nvidia.
The culprit; once partners join the GPP program, the partner company now has to have its “Gaming Brand Aligned Exclusively With GeForce.” E.g. Intel and AMD would become persona non-grata for the partners that sign up with Nvidia. So the Gigabyte, MSI or ASUSes out there would exclusively work with NVIDIA, and cannot work with not AMD or Intel. It thus looks like that Nvidia plays its cards, but not the way they are meant to be played. Nvidia gives it partners a choice, you can choose to not opt into the program as a partner. However, here’s where certain tactics come into play if a company does not sign up for the program, they will miss out on things like the following:
- High-effort engineering engagements
- Early tech engagement
- Launch partner status
- Game bundling
- Sales rebate programs
- Social media and PR support
- Marketing reports
- Marketing Development Funds (MDF)
And that’s quite a package, Marketing Development Funds, for example, are normally outted to partners for advertising, promotions, exhibits etc and what not. They would be completely cut off such funds, and these likely are substantial budgets alright. So that last bullet is an important one. Next to that if you do not join the program, you can bet as a partner that chances are high you are not on the ‘preferred list’ anymore, resulting into maybe receiving less GPU stock, if they were not GPP members. All speculation at this point. So basically one word covers all of what has been discovered, Nvidia seeks exclusivity, a bit of a devils deal and dilemma really. If the story is as presented correct, it’s not a good development at all, this is a way Nvidia can negatively have an impact on brands like Intel and AMD, and in the long run, less competition means less choice, less innovation, and likely higher prices. So this impacts you as a consumer as well.
One question that also remains is, how new is this really, if at all? The board partners that have had their hands in Nvidia’s cookie jar have been pretty much forced to be Nvidia exclusive for years now. It seems that this now would more of an effect on the MSI’s, ASUS and Gigabyte’s out there. Nvidia has yet to respond to the allegations, but clearly if true and valid, this is stuff is pure politics with monopolistic tendencies, food for layers. Then again, the story might be very one-sided being pushed by certain forces in the industry, perhaps this updated GPP changes very little to nothing for NVidia’s partners, much like it has been for years. And also let me throw in one more thing that has been playing in my head while writing this. As a bit of a paradox and food for thoughts; what about the AMD exclusivity with XFX & Sapphire?
