Compared to Q3 2009, Nvidia really took a big hit in sales. You can almost say that sales in the fiscal fourth quarter, the period from November until January 31st for Nvidia, have halved.

Graphics sales fell 47 percent compared to Q3 2008. Nvidia said that desktop sales fell 39 percent, while notebook sales fell 63 percent where many of these chips were IGP based. Nvidia says the current trend is to buy low end SKUs. Memory sales went down 7 percent and workstation almost fell 50 percent compared to a last quarter.

Usually Q4 is the best quarter, but many people got scared by the economic crisis and they didn’t buy many graphics cards. The thing that Jensen failed to mention is that ATI was doing really fine with its sales, especially in the performance and high end segment.

We can only hope that Nvidia’s sales will recover in its first fiscal quarter of 2009, that takes place from February 1st to April 30th, but traditionally this is a bad time to make a big recovery and earn much money as people's wallets are dry from Xmas shopping.