The company's preliminary quarter report states its gaming revenue was $2.04 billion, down 44% compared to the previous quarter.
NVIDIA published its preliminary quarter report for the last three months announcing the company's sales decline. While NVIDIA initially expected to get $8.10 billion in revenues, the final sum now should be around $6.70 billion, which the company attributes to lower sell-in of gaming products and the pricing programs with partners NVIDIA implemented "to reflect challenging market conditions that are expected to persist into the third quarter."
Gaming revenue this quarter was $2.04 billion, which is 44% lower than in the previous quarter and 33% lower than last year. In response to poorer sales, NVIDIA decided to change prices and inventory:
"As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory," said Jensen Huang, founder and CEO of NVIDIA. "NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI."
The company's Professional Visualization and OEM and Other segments were also down compared to the same period last year, at 4% and 66% respectively. However, other parts of the business fared better than in 2021: Data Center was up 61% and Automotive gained 45%.
"The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty," said Colette Kress, EVP and CFO of NVIDIA.
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