Until recently, Intel's (INTC +3.03%) Arc graphics cards received little interest from board partners. Intel sells its own "Limited Edition" versions, and there are some models from AsRock and Acer available. At launch, AsRock was the only board partner selling in the United States.
Historically, graphics card giants Nvidia and AMD have relied on board partners to bring graphics cards built around their GPUs to market. The result is a wide array of models that vary by cooling solution, overclocking potential, size, visual elements, and other factors. A graphics card launch often involves many board partners launching multiple versions, giving customers a bevy of options to choose from.
Intel is new to the discrete graphics card business, so it's not too surprising that board partners would be cautious about joining Intel's camp. A rough launch probably didn't help, either. Initially, Intel faced major software driver issues that hurt performance and introduced frustrating bugs.
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Key Data Points
Gaining support
The good news for Intel is that those driver issues are largely in the rearview mirror. The company has been churning out driver updates since launch, ironing out the wrinkles and improving performance drastically in affected games. While the situation isn't perfect, Intel's Arc graphics cards are now viable options for gamers looking for a midrange alternative to Nvidia and AMD.
Intel has attracted a couple new board partners recently, a positive sign that its graphics cards are selling well enough to attract interest. Sparkle, which used to make graphics cards but exited the market as competition heated up, is making a comeback with Intel's Arc graphics cards. The company displayed five different models at Computex, ranging from low-end models to models focused on overclocking potential. Some are already available at retail.
Intel has also snagged Biostar as a board partner. Biostar is also an Nvidia and AMD board partner, so it's notable that the company is opting to sell Intel graphics cards as well. Biostar is focusing on low-end Arc A380 graphics cards for now.
A multibillion-dollar opportunity
Intel is playing the role of disruptor in the graphics card market. It can win by offering a better value proposition than Nvidia and AMD.
While graphics card prices have come way down since the pandemic-era, cryptocurrency-driven boom of the past few years, it's only recently that mainstream cards have become available at anything resembling mainstream prices. A bit of a price war erupted around recent launches from Nvidia and AMD, with AMD suddenly dropping the launch price of the RX 7600 to $269 to undercut Nvidia's RTX 4060.
Even with a newfound focus on pricing, Intel has a huge opportunity to position itself as the best value in the midrange portion of the market. The company has dropped the price of its Arc A750 multiple times, and it now sells at retail for around $239. With all the driver updates, this card now produces impressive performance for that price. In Tom's Hardware's review of AMD's RX 7600, it found that Intel's Arc 750 wasn't far behind, especially at higher resolutions.
Intel's next-gen Battlemage graphics cards are expected to launch next year. There should be far fewer software issues for Intel's second round, and with more board partners in tow, customers will have a wider variety of options. If Intel gets the pricing right, it could convince gamers looking to upgrade from older midrange cards to give its graphics cards a shot.
While it will take time for Intel to overcome the roughness of its graphics cards launch in the minds of potential customers, snagging new board partners is a solid vote of confidence in the company's efforts to become a major player in the graphics card market.
