Video card sales slid in Q4 as buyers awaited Vista

Video card sales slip 15 per cent

Revenues from the sale of add-on video cards in the last three months of 2006 were down 15 per cent from the same quarter in 2005, as the delayed release of Windows Vista and ever-more-powerful integrated graphics processors took their toll on Nvidia and AMD, according to Jon Peddie Research.

In the fourth quarter of 2006, 21.1 million add-on graphic cards were sold, totaling $US4.5 billion in revenue, according to figures released last week by the US market research firm. The number of units sold was down 3 per cent from the previous quarter and down 5.7 per cent from the same quarter in 2005.

The firm said the "lull" was caused by a number of factors. Windows Vista, which is expected to boost video card sales long term due to higher graphic requirements for games and other applications, caused some buyers to hold off on making purchases during the normally lucrative holiday season, the researcher said.

Nvidia has already released a video chip compatible with Vista's Direct X 10 rendering technology, the GeForce 8800. That caused Nvidia to push down the prices for its older G7X and NV4X processors.

Meanwhile, the No. 2 player in the add-on graphics card market, AMD's ATI Technologies subsidiary, has not yet shipped its Direct X 10-compatible processor, the R600, missing several deadlines.

Peddie did not reveal the Q4 market shares of either firm. AMD had lost share in Q3 after acquiring ATI.

The final factor was Intel's success. A non-player in the add-on graphics cards market, Intel is the leading maker of chip sets with CPUs sporting integrated graphics processors (IGP). It saw shipments of its latest, more powerful IGPs grow in the second half of 2006, according to Peddie.

Even so, Peddie said Nvidia and AMD's ATI had reasons to be optimistic in 2007. Vista, the researcher said, was likely to cause buyers to choose a higher-performance add-in board over integrated graphics."

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Eric Lai

Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?