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　　Nvidia said it will work with retailers to adjust prices in response to "challenging market conditions" in the gaming industry. Nvidia has not made it clear whether the "price adjustment" means a price reduction for gaming chips.

　　Nvidia reported second-quarter revenue and earnings after the bell on Wednesday, which missed expectations. Shares of Nvidia fell 5% after the earnings report. Nvidia stock has fallen more than 42% since the start of the year.

　　Two weeks ago, Nvidia issued a performance warning. Nvidia warned of a sharp drop in sales in the gaming business and a significant slowdown in growth. The company also warned for the first time that gross margins may fall.

　　Nvidia’s second-quarter revenue of $6.7 billion fell well short of analysts’ expectations of $8.1 billion; the company expects sales to fall further to $5.9 billion in the fiscal third quarter, compared with expectations of $6.95 billion.

　　In the second quarter, Nvidia's gaming division revenue fell 33% year over year to $2.04 billion, a larger-than-expected decline. "Global macroeconomic weakness has led to a sudden slowdown in consumer demand for gaming products," Nvidia Chief Financial Officer Colette Kress said on a conference call with analysts.

　　Nvidia's gaming chips are primarily driven by sales of laptops and consoles, such as Nintendo's Switch. Nvidia founder and CEO Huang Renxun said at the first-quarter earnings conference: "Overall, the game business is slowing down."

　　According to research firm Ampere Analysis, the global games and services market is expected to decline 1.2% year-on-year to $188 billion in 2022, the first annual decline in more than a decade.

　　According to data from market research firm NPD, Americans spent $12.4 billion on games in the second quarter of this year, down 13% year-on-year; according to Sony, the total amount of time spent by the PlayStation player base on games fell. 15%, well below the company's original forecast.

　　Nvidia said it will work with retailers to adjust prices in response to "challenging market conditions" in the gaming industry. Nvidia did not clarify whether the "price adjustment" means a price reduction for game chips. Gartner chip analyst Sheng Linghai told the First Financial reporter: "Nvidia's game chips are no longer out of stock, and the corresponding channel prices have also begun to decrease. ."

　　Sheng Linghai also said that since NVIDIA separated the "mining" special chip from the game business, this is also an important reason for the decline of the game business; on the other hand, due to the collapse in the price of cryptocurrencies, NVIDIA's "mining" chip has also been affected. "The need for specialized chips.

　　“Volatility in the cryptocurrency market has impacted the demand for our products and will continue to impact our business in the future,” Kress said in a statement. “We cannot yet accurately quantify cryptocurrency-specific mining chips. The extent to which the reduction in demand for games will impact the decline.”

　　But Nvidia's data center business remained strong, growing 61 percent to $3.8 billion in the second quarter, driven by demand from large cloud providers.

　　During the global Covid-19 pandemic, Nvidia's business of gaming chips and data center chips has increased dramatically as people work from home. In fiscal 2022, it drove Nvidia's revenue growth of 61%.

　　But as the impact of the new crown epidemic fades and the global macro economy faces more severe challenges, in May this year, Nvidia first warned that the business may face a decline, and the macro environment may lead to a loss of $500 million in revenue, and said it would slow down the pace of hiring.