As the memory market can attest, it's become a tough proposition to try and sell computer components for a profit. But it's not just memory; motherboards and videocards have been on the decline since Q3 2008, and according to Henry Lu, VP of products at MSI, the market won't see any further expansion.
It gets even worse. Lu contends that a top four motherboard maker -- Asus, Gigabyte, ECS, or MSI -- will drop out of the market within the next few years due to the inability of the market to support the growth of all four. It may seem inconceivable that one of the industry's stalwarts should ultimately exit stage left, but one only need look back at Abit's recent fall from grace as a grim reminder of how quickly the game can change.
And speaking of Abit, it's because of them and other second-tier mobo makers exiting the market that the big four can scrape by for the next three years, Lu says, but then something has to give. If Lu's prediction comes true, the question is, who will be the one to leave? Ironically, it's MSI who seems poised to fall if looking strictly at motherboard shipments. In 2008, Asus shipped around 21 million mobos, the same amount as ECS. Gigabyte trailed slightly behind at 19 million, and MSI was the least active shipping around 16 million.