Sony and Microsoft helping AMD's struggling GPU business
Su’s statement highlights the importance of AMD’s console chip sales to Microsoft and Sony, which help offset GPU declines by bringing greater profitability to the company’s gaming segment. While this is good news for AMD, it also shows just how dependent the company is on the success of its upcoming Graphics Cards.
It’s been a tough few years for AMD’s GPU business, and the latest AMD earnings call confirms this by revealing a decline in revenue and operating income for the division. However, this is offset by the profitability of the gaming segment, driven primarily by console chip sales to Microsoft and Sony.
Revenue from AMD’s Q2 this year is $5.4 billion, down from $6.6 billion in Q2 2022. This marks a 13% decline, and the company cites a lack of new AAA games and improved retail availability as the primary drivers.
GPU sales are lower than expected, with AMD expecting to ship 14 million graphics cards in Q2. The global economic struggles and existing inventory may be affecting demand, but the upcoming RX 7800 and RX 7700 boards have the potential to boost AMD’s market share if they outperform Nvidia’s offerings.
However, there are some encouraging signs from the data center and client segments, particularly CPUs and APUs. While gamers will always demand the fastest graphics card for the lowest price, the renewed interest in AMD’s Ryzen 3000 series and new Ryzen Mobile products is helping the company’s bottom line.
So, while the success of the new GPUs will ultimately depend on market reception and consumer demand, it’s clear that competition in the GPU space is helping AMD by boosting sales across the board. With the PC industry also showing signs of recovery, as indicated by Intel’s return to profitability, there’s plenty to be positive about.
The potential of the upcoming RX 7800 and RX 7700 cards
The upcoming RX 7800 and RX 7700 cards have the potential to shake up the GPU market, but only time will tell if they can help AMD reclaim its position as the number two graphics provider.
