Nvidia forecasts games division decline next quarter

Nvidia forecasts games division decline next quarter

Graphics hardware giant Nvidia has said that it expects the amount of revenue coming from its games division to fall in its next financial quarter.

That's according to CEO Jensen Huang (pictured), who told investors – as transcribed by Seeking Alpha – that there has been "softness" in Europe and China due to the war in Ukraine and COVID lockdowns, respectively. as a result, Nvidia reckons it'll see a drop in revenue from games for the quarter ending August 1st, 2022. This comes off the back of a "record quarter" for its games business, for the three months ending May 1st, 2022. 

Nvidia is not selling its wares in Russia anymore, adding that this region is roughly two per cent of its total revenue and "a little larger percentage" when it comes to its games division.

"However, we started seeing softness in parts of Europe related to the war in the Ukraine and parts of China due to the COVID lockdowns," Huang said.

"As we expect some ongoing impact as we prepare for a new architectural transition later in the year, we are projecting gaming revenue to decline sequentially in Q2."

As for how much its games business is going to dip, CFO Colette Kress said that "it will probably decline in the teens". Nevertheless, she is optimistic about the long term.

"As we try and work through some of these lockdowns in China, which are holding us up," Kress said.

"So overall, the demand for Gaming is still strong. We still expect end demand to grow year-over-year in Q2."

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.