Intel Exits Gaming GPUs as AMD and NVIDIA Take Over Again

Another change is afoot in the desktop graphics market. It seems Intel's bid to join AMD and NVIDIA as a third major player in the graphics processing unit (GPU) market has failed, at least for the time being. 

According to recent reports, Intel will not be bringing out another discrete gaming graphics card after Battlemage, leaving AMD and NVIDIA to battle it out without new competition.

Intel's Gaming GPU Adventure Takes a Turn

Intel launched ARC into the discrete GPU market, hoping not only to compete with AMD and NVIDIA but also to disrupt what had been a two-horse race for years. The timing was bold, but it came at a challenging time in the PC market. The PC industry was facing supply chain issues, shifting market preferences, and a shrinking DIY PC market. Despite the hardware, Intel was always going to have an uphill battle.

And now, recent leaks suggest that Celestial (Xe3P), Intel's next GPU, will not be released as a standalone gaming GPU. In response to a question about whether Intel would have a discrete gaming GPU next year, a prominent leaker replied, "No gaming GPUs.

Battlemage Could Be Intel's Last GPU

Battlemage seems to be the last of Intel's desktop gaming GPUs for some time. Although Intel recently launched the B70 (a workstation card), the company's last consumer desktop gaming GPUs may be Battlemage.

So if you were holding your breath for Celestial to take on AMD's Radeon or NVIDIA's GeForce GPUs, you may need to hold your breath a little longer. The future of Intel's discrete GPUs, such as the Xe4 Druid, is also reportedly unclear. Presently, Battlemage is all we know.

Intel's New Goal: Integrated Graphics

This doesn't mean Intel is giving up on gaming. It's just focusing on integrated graphics. Xe3P is still on the cards for future CPUs, such as Nova Lake and future mobile chips.  Recent Intel integrated graphics have made great strides, with performance that no one would have expected from integrated graphics just a few years ago.

We've seen the best of what Intel's new graphics technology can offer in mobile processors. This shift will benefit game consoles and laptops most significantly. In fact, the integrated graphics now pack sufficient power for esports, indie games, and some AAA games with low settings. It's an understandable move, even if regrettable. It's costly to get into the GPU business; you need to invest heavily in software development and deliver on hardware. Intel was on the right track, but things moved too quickly.

The PC market has been staying the same, demand for GPUs has changed since the mining craze is over, and there has been a lot of competition. With their software stacks and customer bases, AMD and NVIDIA were in strong situations. Intel got involved in a battle with big stakes and little room for mistakes.

What This Means for Gamers

The departure of Intel as an independent competitor is a sad day for desktop gamers. Typically, more competition leads to lower prices, faster innovation,, and greater value. This leaves an AMD/NVIDIA duopoly. This could lead to softening prices and conservative feature races.

But Intel's integrated GPU developments still matter. Improved integrated graphics drive AMD to upgrade its APUs, aiding laptops, handheld gaming, and low-budget PC builders.

The discrete GPU market is now likely to return to normal.

NVIDIA and AMD will again compete, free of a third-party spoiler. Intel's foray into the GPU market was a valuable exercise, if not a triumph. It demonstrated that you can start a GPU company, but it won't be easy. 

For the moment, if you're looking for a desktop gaming GPU, things are getting easier. It's simply AMD vs NVIDIA again.