Nvidia pushed out of the integrated graphics market

Sandy Bridge and Llano platforms from Intel and AMD will force Nvidia to exit its GPU business by the end of the year.

Beancounters at Forbes estimate that revenues from Nvidia’s integrated graphics fell below $400 million for 2011, and 2012 could see a complete exit.

At the moment, Sandy Bridge and Llanos are accelerated processor units and incapable of giving the high end cards a run for their money, but Nvidia has been making a bob or two from selling GPUs for the notebook and desktop segments.

Forbes has been looking at some figures and have come to the conclusion that integrated GPUs really are causing the death of discrete cards.

In desktops, the number of discrete desktop GPUs sold as a proportion of desktops shipments has fallen from an estimated 62 percent in 2007 to about 47 percent in 2011.

Normally Forbes would predict stable levels in the future but if APUs threaten this business, this figure could continue to fall.

In the worst case, only 35 percent of the desktop users will be using discrete GPUs in 2018 and notebooks will stay at 33 percent and not grow .

Forbes is warning if that is the case then Nvidia will  have to pack its bags and leave the discrete market completely.