OCZ drops out of memory business to focus on SSDs

So, that’s why OCZ didn’t have much in the way of new memory modules on display at CES this year. According to PC Perspective, the company has decided to exit the memory business entirely. Here’s a snippet from the official press release:

In August 2010, the Company announced a strategic optimization of its memory products whereby it discontinued certain unprofitable commodity memory module products with the intent to continue only with certain high-performance memory products. However, since that time, there has been well-chronicled, continued weakness in the global DRAM markets.

Having balanced this DRAM market weakness against the capital needs of the Company’s growing SSD products, the board has determined that it is in the best interests of the stockholders to accelerate plans to discontinue its remaining DRAM module products by the end of its current fiscal year of February 28, 2011. Accordingly, our DRAM products are now expected to have minimal, if any, sales in the next fiscal year and beyond.

Over OCZ’s last nine fiscal quarters, revenues from its memory business have declined more than 71%. The company’s SSD revenues have grown by nearly a factor of 20 over the same time span. OCZ raked in over $41 million in SSD revenues in its last quarter but generated only $6.3 million from its memory department. If you compare those figures to just the previous quarter, revenues from solid-state drives doubled, while those from memory were cut in half.

Interestingly, OCZ’s power supply business appears to be in decline, as well. PSU revenues have fallen from over $11 million a couple of years ago to $5.5 million for the last quarter. Don’t expect OCZ and PC Power & Cooling PSUs to ride off into the sunset anytime soon, though. Vice President of Marketing and Communications Alex Mei told PC Perspective that SSDs and PSUs are both “strategic product categories” for OCZ.

Mei went on to say that OCZ will fully support customers who have purchased the company’s memory modules. Lifetime warranties will be honored with replacement modules, credit toward other OCZ products, or refunds at “fair market value.”

Comments closed
    • clone
    • 9 years ago

    good riddance, never got consistent quality from OCZ, some worked, more didn’t and more than should required too much voltage just to post.

    stopped recommending their RAM 7 years ago, stopped purchasing any OCZ product 4 years ago after giving them a last chance and…. getting burned on RAM yet again.

    • albundy
    • 9 years ago

    How do you make SSD’s without memory? LoL’ed when I read title.

    • stupido
    • 9 years ago

    test…

    edit: aaaa! now it works… (since the site was updated…)

      • stupido
      • 9 years ago

      What a stupid first post here… 😉

    • MaxTheLimit
    • 9 years ago

    In other news Pepsi is going to stop making beverages. Only the more profitable potato chip side of the business will continue. 😛

    • TREE
    • 9 years ago

    Oh great, better now get this rubbish OCZ Platinum junk RMA’d ASAP. This set was already a replacement for memory that wouldn’t run at its advertised speeds and this set does the exact same. OsleeZZ is what they should really be called.

    • Bensam123
    • 9 years ago

    Wow, this is like Abit dropping out of the motherboard business. I first heard of OCZ and purchased their memory products. Given Abit really didn’t have any products besides motherboards, this is still pretty ridiculous.

    • jalex3
    • 9 years ago

    i allways like ocz memory, i find the crazy after they just releast 4 new memory lines. power supplies should of been killed off instead.

      • jalex3
      • 9 years ago

      LOL at thumbs down, but why? because i lik,e ocz ram more then pus?

        • jalex3
        • 9 years ago

        sorry but after the 2 more thumbs down i just had to say “please troll can i have some moar!”

          • NeelyCam
          • 9 years ago

          Now it’s just target practice

      • Meadows
      • 9 years ago

      Thumbs down for grammar.

        • derFunkenstein
        • 9 years ago

        Are you sure? Maybe he really did find “the crazy”.

          • Farting Bob
          • 9 years ago

          I ride the crazy train every night, not sure what RAM that uses.

    • MadManOriginal
    • 9 years ago

    [quote<] Lifetime warranties will be honored with replacement modules, credit toward other OCZ products, or refunds at "fair market value."[/quote<] Yeah this part bothers me. Replacement modules? Perfect. Credit toward other products? Erm...not great, who knows how future products will be, but if the credit is MSRP or price paid? Ok. Refunds for 'fair market value'? F*** that! First off how do you even figure fair market value for something that is no longer sold :p I guess they just mean used prices off eBay or something but if they just try to hose customers by giving crappy values that would be irritate me. I've had a few sets of OCZ RAM that worked fine, I was just never stupid with it with speeds or voltages. The only RAM I've ever had go bad was some G Skill DDR2, and I remember the whole rash of Crucial DDR2 failures that people just seemed to take in stride. What I liked about OCZ is they had 'performance' RAM with [b<]non-stupidly-huge-will-block-your-CPU-heatsink heatsinks[/b<] (Platinum series) that didn't cost much more than anything other than the most basic value RAM. I would have bought OCZ RAM again but oh well...

    • Forge
    • 9 years ago

    Meh. I bought OCZ memory after they made nice to me over an old gripe. Paid awfully good money for a 12GB 1600MHz kit for my i7. One stick is plain old bad, and only 2 sticks will work at the rated speeds and timings. Memory’s been working at 1066MHz and horrible timings for the last year and a half, because I didn’t want to be completely without desktop to RMA it.

    Good on you, OCZ. Discontinue worthless products. Please continue.

    • just brew it!
    • 9 years ago

    Yeah, I imagine it is tough to make money selling DRAM modules at current prices.

    I wonder how much lower DRAM can go? We’re already back down in $10/GB territory, which IIRC is about as low as it got the last time the memory market crashed. Time to stock up! I just bought an extra 8 GB for a future system build…

    • lilbuddhaman
    • 9 years ago

    I think its a smart move on their part, and SSD’s have large roomn for them to leave their unique mark.

    • HisDivineShadow
    • 9 years ago

    SSD’s are great for their profits right now, but as prices drop and performance begins to hit the point of insane diminishing returns, I don’t think their profitability will stay high. When they’re common and cheap, I don’t think OCZ’s going to be making a mint off them any more than they were off memory.

    Meanwhile, they bought PC Power and Cooling to get their PSU’s and now that market’s drying up, too. It’s going to be a shame when PCP&C-like PSU’s are gone because OCZ withdraws from that market, too.

    I don’t think OCZ has a long range plan because they won’t be able to profit so much from SSD forever. Give it five years. Hope they’ve figured out something else to sell by then.

      • NeXus 6
      • 9 years ago

      Agreed. The SSD market will be very saturated in a few years and, like their RAM business, the profits will dry up unless they can keep their prices low enough to compete. I don’t see them doing that because they’ve always marketed their stuff toward gamers and enthusiasts. Look at BFG.

        • NeelyCam
        • 9 years ago

        In five years Intel will integrate 80GB worth of flash inside every CPU package, and will stop supporting SATA altogether. Why let anybody else make money off Flash, when you could make all the money yourself!

          • just brew it!
          • 9 years ago

          Umm… what? That makes no sense. Even with projected process shrinks, the die size would be huge, and yields correspondingly abysmal.

            • MadManOriginal
            • 9 years ago

            Hello sir, I believe you dropped your sarcasm detector. *hands it back* Here you are!

            • NeelyCam
            • 9 years ago

            [url<]http://www.newegg.com/Product/Product.aspx?Item=N82E16820139391[/url<] Huge. HUGE!! And it will be even HUGE-ER in five years!

            • brsett
            • 9 years ago

            I agree that Flash is unlikely. But NVRAM on chips — absolutely it just makes too much sense. And there are other ways to keep the die sizes down. Mass != die size.

        • bcronce
        • 9 years ago

        Many companies use the OCZ Sandforce controller. Even if you don’t purchase an OCZ SSD, there is a very good chance they they are making money from the sale.

        It’s more likely that OCZ will primarily sell SSD controllers, but their SSDs will be used for their own testing. They don’t need to make much money on their SSDs because they can use the data from their SSDs to create a better controller and the controller is what will make a ton of money. This will allow them to focus on high end SSDs while adding value to their controller.

        Similar to how consoles work. The PS3 is sold at a loss or nearly no profit, but they make back their money by charing royalties on video games for the platform.

          • Firestarter
          • 9 years ago

          OCZ != Sandforce, just FYI. Sandforce and OCZ are partners in the SSD business, but in no way does their partnering imply that OCZ somehow owns Sandforce or their intellectual property.

          Also, I have no idea how OCZ could stand to gain from selling SSDs at a loss in a similar way to console manufacturers. It’s not as if OCZ is cashing the royalty check, that’s Sandforce Inc’s privilege.

    • mcforce0208
    • 9 years ago

    I have 8gb DDR2 @ 1066mhz of ocz reaper in my pc…… Best Ram i have ever had….

    • anotherengineer
    • 9 years ago

    Oh NOES, well as long as they don’t shaft me for lifetime warranty on my old ddr1 or my LV ddr2-1066 ram sets still in use I have.

    “Lifetime warranties will be honored with replacement modules, credit toward other OCZ products, or refunds at “fair market value.”

    Credit – wtf can I get new ddr1 with ocz credit when they won’t be selling ram anymore lol or refunds at “fair market value” damn I paid about 230 bucks for my old ddr400 2gb plat kit, I should rma for fun to see what they offer lol

    I tend to prefer Mushkin just due to their support. I would probably get a Mushkin SSD over an OCZ also, although its the same sandforce controller and memory chips, I guess the firmware must be a little bit different??

    • flip-mode
    • 9 years ago

    When a company buys PC Power and Cooling and then basically halts innovation and lets all their PSU product line languish, some heads need to roll. OCZ has been sitting on it’s hands while Corsair, Seasonic, Antec, and just about any PSU maker worth talking about has been marching on.

    Speaking of languishing, what’s happened to TR’s “Beast”?

      • anotherengineer
      • 9 years ago

      I ate it. mmmmmmmm BUUUUUUUURRRRRRRRRRRRRRRRRRRPPP ahhhhhhh

      Edit – Ya I agree with ya flip, I have not seen a good PSU review here in a looonnnggg time. ( I find myself going to Jonnyguru and HardwareSecrets for good psu reviews)

      I think another complete SSD shootout review with all the LATEST firmwares is also due, (on an AMD 850SB would be nice also) with a wd black thrown in for mech hdd comparison.

      Cmon Geoff, whip Cyril into shape 😉

    • Tibba
    • 9 years ago

    Probably a good strategic move on OCZ’s part. With the advent of Sandy Bridge, the practice of selling ever more elaborate RAM heatsinks to overclockers will most likely decline, at least on the Intel side of things.

    I think the new standards will boil down to:

    Is it cheap?
    Does it run at rated speed with little to no fuss?
    Is it reliable?

      • StuG
      • 9 years ago

      I’ve always had those standards, and I think most of the community did too. Those flashy heatsinks actually did very little in way of overclocking headspace.

        • travbrad
        • 9 years ago

        Yep. Even if they did overclock better, there is very little performance to be gained from your memory (except in synthetic memory tests) anyway. Even the difference between DDR800 and DDR1600 is a few FPS at MOST in games (and usually it’ll be less than 1FPS at realistic settings).

      • crabjokeman
      • 9 years ago

      My list is more like:
      Does it follow the JEDEC standard? (this is a must)
      Is It reasonably priced? (another must, mail-in rebate=bonus points)
      Is it on the mobo manufacturer’s approved list? (bonus points)

        • NeelyCam
        • 9 years ago

        I’m more than happy to pay $20 extra for a pair of sticks if they are on the mobo approved list. I’m so tired of stuff not working – be it DOA or compatibility issues.

    • tejas84
    • 9 years ago

    Good riddance. Their Ram sucked.

    • ssidbroadcast
    • 9 years ago

    This is [i<]almost[/i<] akin to BFG saying they're exiting their GPU business. The only difference is that SSDs are a growth segment, and OCZ seems to be fairly competent at making them.

      • smilingcrow
      • 9 years ago

      I’ve had more trouble with OCZ memory than all the other brands I’ve used combined.
      Had a batch of DDR3 tri-channel kits and about 40% of them were faulty. Had to RMA to Holland and some of the replacements were also faulty.
      When trying to diagnose the problem I spoke with their tech support who said that their kits weren’t guaranteed to be stable at the SPD settings which really surprised me.

    • delsydsoftware
    • 9 years ago

    I have never had any OCZ ram that would get close to the rated timings. I understand that their SSDs are quite good, but I’m hesitant to buy anything from them given my previous experiences. Dropping the ram division is going to help their image quite a bit.

    • kamikaziechameleon
    • 9 years ago

    I really like their memory, this is a bit of a dissapointment.

    • Spotpuff
    • 9 years ago

    That sucks; OCZ products were always cheaper than Corsair and at least had lifetime warranties and decent timings. In Canada our selection isn’t as great so some brands like Mushkin are harder to find.

    Oh well, hopefully it means they will pump out cheaper SSDs.

    • Farting Bob
    • 9 years ago

    I can see a few more RAM brands dropping out over the next year or 2. There just isnt as much demand for it these days. Ever since home PC’s the need for RAM had increased steadily with new OS’s and programs demanding more and more to run fast.

    4GB seems the mainstream sweet spot now to be comfortable and that will creep up to 8GB eventually im sure but only because of price, i doubt many people will need 8GB of RAM for what they use PC’s for in the next few years.

    With few doing RAM upgrades every year like back in the day and a constant oversupply/undersupply leaving prices fluctuating all the time its not a business to be putting all your eggs in. OCZ are just seeing the future and pulling out before it gets costly.

      • travbrad
      • 9 years ago

      Yep we are finally at a point where even a PC bought from best buy will generally have plenty of RAM. Working on people’s WinXP machines with 128MB or even 256MB of RAM was painful (and these people always had 20 extra processes running of course).

      • stdRaichu
      • 9 years ago

      Not just the amount of it (90% of people I’ve seen aren’t even close to eating 2GB of memory in everyday usage), but there’s very little need for OCZ’s trademark “prosumer” RAM any more. Every comparison I’ve seen between generic and 733t RAM on CPU’s from the last few years has shown that the £200-a-stick overclocked overvolted RAM gets you a 3% bigger e-peen in synthentic memory benchmarks and a 0.5% increase in real world applications.

      There’s so little performance difference between RAM at the top and bottom ends that it’s rapidly becoming unprofitable to be a boutique RAM dealer, no matter how pretty the useless aluminium heat spreaders are. SSD’s are going to be a high growth area for at least a decade to come though, and OCZ did well to get their foot in the door there, with [i<]a lot[/i<] of help from Anand which they were eventually gracious enough to accept.

    • GodsMadClown
    • 9 years ago

    Wow. Didn’t OCZ make it’s name on premium memory modules? Pretty interesting development.

      • phez
      • 9 years ago

      they say the market was the cause, but i do think the quality of their modules took a noticeable turn for the worst. im not saying they were an overall bad choice for modules, but thanks to the internet and word of mouth, its not that surprising their sales took a major hit.

        • NeelyCam
        • 9 years ago

        Agreed. What I remember from OCZ is memory sticks with 50% failure/DOA rate. That’s why I was so hesitant about buying an OCZ SSD… but so far so good – the only OCZ SSD I have works fine.

          • Ethyriel
          • 9 years ago

          Maybe so, but I’ll still choose the likes of Intel, Corsair, and Crucial over them. At least their RMA process can’t possibly be any worse than PNY, but I don’t like headaches, and their quality record still isn’t enough.

          • anotherengineer
          • 9 years ago

          Which SSD and capacity do you have Neely?

            • NeelyCam
            • 9 years ago

            OCZ Onyx 64GB (desktop). I also have an Intel X25-M G2 80GB (desktop) and an Intel X18-M G1 80GB (CULV ultraportable).

            They all work well. It’s strange – it somehow seems like the desktop with the Onyx is snappier than the one with X25, even though otherwise the two are practically identical… Maybe it has something to do with power saving settings

            Either way, because of my Onyx experience, I believe that pretty much any modern SSD is more than adequate for my purposes, so I go with the cheapest option.

            • NeelyCam
            • 9 years ago

            Ah, I see that NeelyCam haters are here again.

            Yo, you missed a couple in the Dirk Meyer and Brazos ultraportable comments sections!

        • dmjifn
        • 9 years ago

        I wouldn’t be surprised about that. Whether it’s the nature of their biz (novelty items) or the way they run their ship, they seem to garner a lot of complaints.

        I got some low voltage stuff in an AMD bundle off the ‘egg and it had terrible reviews, especially for not working with AMD. The stuff identified itself as 1.45v. Some reviews claim that OCZ techs tell them it’s “Intel RAM”. The motherboard I had said it took 1.65v and this RAM was on vendor list at 1.65v. The OCZ forum listed (officially!) what the right voltage and timings were for the 880G. So I set them manually and, low and behold, it works just fine. It makes me wonder how many returns they got for stupid stuff like this.

          • northreign
          • 9 years ago

          “It makes me wonder how many returns they got for stupid stuff like this”

          It would be nice if the bios actually worked better for today’s hardware. Where’s that new one – its so very late.

          • phez
          • 9 years ago

          yea ocz seemed like they never even heard of SPD

        • Vaughn
        • 9 years ago

        Have to agree with you. I used only their memory during the Socket 939 days. It was fast,stable and great for overclocking. However in the last few years the QC went downhill for their memory modules.
        I started using Muskin memory and been with them ever since. My i7 build from 2009 has all muskin memory and I wouldn’t consider OCZ for any recent builds.

        • derFunkenstein
        • 9 years ago

        It can’t possibly be as bad now as it was back in the early part of the last decade. Like holy crap wow they were terrible.

      • willyolio
      • 9 years ago

      drop what doesn’t work if you have other things making money. Nintendo used to be a playing-card, taxi, and love-hotel company.

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