NVIDIA CONFIRMS Your PSU Can't Handle RTX 3000 - WAN Show August 28, 2020

Episode Summary

Executive Summary: The episode centers on major tech-industry clashes and product news: Epic vs. Apple’s App Store fight and its fallout for Fortnite and Floatplane, NVIDIA’s new 12-pin GPU power connector and cooler design, Corsair’s IPO filing and business prospects, Apple’s search ambitions, and a reported Russian hacking attempt against Tesla. The hosts repeatedly frame these stories around platform power, consumer impact, and how companies monetize ecosystems.

Main Topics: Epic vs. Apple App Store lawsuit and Fortnite fragmentation (Priority: 5/5): The hosts explain the court’s split ruling, Epic’s attempt to bypass Apple’s 30% fee, and how Fortnite is now effectively split between iOS and other platforms. They debate whether users will blame Apple or Epic and argue the case is really about platform control, developer leverage, and antitrust behavior—not just the fee percentage. Floatplane iOS app reinstatement and App Store review pain points (Priority: 5/5): The conversation shifts to their own app experience: Apple initially rejected Floatplane for content moderation and payment-flow reasons, then later reversed course and reinstated the app after a phone review. They criticize Apple’s cryptic, inconsistent review process and note the app will now be gradually expanded. NVIDIA 12-pin power connector and RTX 3000 cooling details (Priority: 4/5): NVIDIA confirms the new 12-pin connector for RTX 3000 cards, ships an adapter from dual 8-pin to 12-pin, and teases a redesigned cooler with a V-shaped PCB and airflow path. The hosts like the cleaner cabling and see it as a likely improvement for high-end GPU builds. Corsair IPO, acquisitions, and growth limits (Priority: 4/5): They dig into Corsair’s S-1 filing, noting pandemic-driven demand, strong positioning in gaming/streaming hardware, and the acquisition of Origin PC. The hosts question how much growth remains for a company already near the top of several categories and discuss the low margins and difficulty of PC hardware and system-building businesses. Apple’s potential search engine strategy (Priority: 3/5): A brief but notable segment covers reports that Apple may be building more search-engine-like capabilities into Spotlight and has hired search engineers. The hosts frame this as Apple reducing dependence on Google and possibly preparing a more integrated, Apple-only search product. Russian hacking plot targeting Tesla (Priority: 3/5): They discuss a reported plot in which an alleged Russian-linked actor tried to recruit a Tesla employee to install malware on Tesla’s internal network, with the employee instead reporting it to Tesla and the FBI. The hosts note the negotiation, surveillance, and the broader implications for corporate espionage.

Key Arguments: Platform fragmentation is bad for consumers; cross-platform ownership and play are preferable to ecosystem lock-in. Epic’s fight is as much about antitrust and monopoly power as it is about the 30% App Store fee. Apple’s security and payment-processing arguments may resonate with some users, but the hosts believe Apple overstates them. Fortnite’s audience and Epic’s brand strength likely push many users to blame Apple if updates are blocked. Floatplane’s experience suggests Apple’s review process can be opaque, inconsistent, and factually wrong before eventual human correction. NVIDIA’s new connector is a practical improvement for cable management and potentially a de facto standard if adopted broadly. Corsair is already strong in several categories, so its future upside may be limited unless it expands into new areas or benefits from sustained demand. PC hardware and boutique system integration are structurally difficult businesses with thin margins and high operational complexity. Apple is likely motivated to build more of its own search stack to reduce Google dependence and regulatory risk. Corporate security incidents can be thwarted by employees reporting suspicious recruitment attempts rather than cooperating. The hosts are skeptical that public markets or IPO enthusiasm will accurately reflect niche PC hardware value. Work-from-home and streaming trends boosted hardware demand, potentially making pandemic-era revenue unusually strong for companies like Corsair and Elgato. The hosts see Apple’s conduct toward developers as part of a broader antitrust and market-power issue, not a simple policy dispute.

Data Points: App Store fee: 30% - The fee Epic is fighting Apple over for in-app purchases and revenue collection. Epic’s preferred fee range: 10% to 15% - The hosts say Epic likely views this as a fairer cut based on the Epic Games Store model. Fortnite player age share: 62.7% are 18 to 24 - A stat cited while discussing who might blame Apple vs. Epic, with the hosts noting under-18 data was not broken out. iPhone XR monthly cost on Verizon: $20.83/month - Used to argue Apple phones can be affordable via carrier financing. Sold iPhone with Fortnite installed: $1,750 - An eBay sold listing cited to show how much value some buyers place on having Fortnite installed on iOS. Brand-new iPhone XR price: $799 - Used as the baseline to compare the premium paid for a Fortnite-installed phone. GPU connector pin count: 12-pin - NVIDIA confirmed the new connector for RTX 3000 series cards. Adapter configuration: Dual 8-pin to single 12-pin - NVIDIA will include an adapter with RTX 3000 GPUs. Potential connector power: Up to 600 watts - Referenced as Igor’s Lab’s earlier assessment of the connector’s capacity. Corsair market size estimate: $36 billion - SEC filing figure for the global demand for PC gaming and streaming gear in 2019. Corsair revenue: $1 billion annually - The hosts describe Corsair as already generating roughly a billion dollars per year. Origin PC acquisition price: $13.8 million - Amount the hosts say Corsair paid for Origin PC, with $2 million in Corsair stock. Main Gear profit in 2015: $39,000 - Used to illustrate how thin profits can be in PC system assembly. Main Gear profit in 2016: $310,000 - Used to show limited profitability even after scale improvements. Main Gear estimated net margin: 4% - Derived by the hosts from the financial figures they discussed. Corsair category rank: #1 in keyboards, high-performance memory, cases, power supplies, and cooling - Mentioned from the IPO filing to show market position. Corsair category rank: #2 in streaming gear and performance controllers - From the filing, used to show strong category position. Corsair category rank: #3 in mice - From the filing. Corsair category rank: #4 in gaming headsets - From the filing. Tesla-related offer: $500,000 initially - Reported amount offered to the Tesla employee to install malware. Negotiated offer: $1 million - The employee reportedly pushed the price up during the sting operation discussion.

Pivotal Quotes: "platform fragmentation like this is honestly just not really good for anyone" — Linus: While explaining why the Epic-Apple Fortnite split hurts consumers beyond just the game itself. "Developers. Developers. Developers. Developers. Developers. Developers. Developers. Developers." — Linus: A Steve Ballmer reference used while arguing that Apple needs developers more than developers need Apple. "I really don't think they're going to back down." — Linus: His assessment that Epic is unlikely to retreat in the App Store dispute because too much money and legal capital are already at stake.

Implications: The episode highlights a broader shift toward platform regulation, developer pushback, and ecosystem scrutiny. It also suggests GPU, streaming, and PC hardware markets are evolving quickly, while Apple and other giants may face more antitrust and review-process pressure.