270°

AMD gaming revenue declined massively year-over-year, CFO says the demand is 'weak'

Poor Xbox sales have affected AMD’S bottom line

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tweaktown.com
RonsonPL30d ago

Oh wow. How surprising! Nvidia overpriced their RTX cards by +100% and AMD instead of offering real competition, decided to join Nvidia in their greedy approach, while not having the same mindshare as Nvidia (sadly) does. The 7900 launch was a marketing disaster. All the reviews were made while the card was not worth the money at all, they lowered the price a bit later on, but not only not enough but also too late and out of "free marketing" window coming along with the new card generation release. Then the geniuses at AMD axed the high-end SKUs with increased cache etc, cause "nobody will buy expensive cards to play games" while Nvidia laughed at them selling their 2000€ 4090s.
Intel had all the mindshare among PC enthusiasts with their CPUs. All it took was a competetive product and good price (Ryzen 7000 series and especially 7800x3d) and guess what? AMD regained the market share in DYI PCs in no time! The same could've have happened with Radeon 5000, Radeon 6000 and Radeon 7000.
But meh. Why bother. Let's cancell high-end RDNA 4 and use the TSMC wafers for AI and then let the clueless "analysts" make their articles about "gaming demand dwingling".

I'm sure low-end, very overpriced and barely faster if not slower RDNA4 will turn things around. It will have AI and RT! Two things nobody asked for, especially not gamers who'd like to use the PC for what's most exciting about PC gaming (VR, high framerate gaming, hi-res gaming).
8000 series will be slow, overpriced and marketed based on its much improved RT/AI... and it will flop badly.
And there will be no sane conclusions made at AMD about that. There will be just one, insane: Gaming is not worth catering to. Let's go into AI/RT instead, what could go wrong..."

Crows9030d ago

What would you say would be the correct pricing for new cards?

Very insightful post!

RonsonPL29d ago

That's a complicated question. Depends on what you mean. The pricing at the release date or the pricing planned ahead. They couldn't just suddenly end up in a situation where their existing stock of 6000 cards is suddenly unsellable, but if it was properly rolled out, the prices should be where they were while PC gaming industry was healthy. I recognize the arguments about inflation, higher power draw and PCB/BOM costs, more expensive wafers from TSMC etc. but still, PC gaming needs some sanity to exist and be healthy. Past few years were very unhealthy and dangerous to whole PC gaming. AMD should recognize this market is very good for them as they have advantage in software for gaming and other markets while attractive short term, may be just too difficult to compete at. AI is the modern day gold rush and Nvidia and Intel can easily out-spend AMD on R&D. Meanwhile gaming is tricky for newcomers and Nvidia doesn't seem to care that much about gaming anymore. So I would argue that it should be in AMDs interest to even sell some Radeon SKUs at zero profit, just to prevent the PC gaming from collapsing. Cards like 6400 and 6500 should never exist at their prices. This tier was traditionally "office only" and priced at 50$ in early 2000s. Then we have Radeons 7600 which is not really 6-tier card. Those were traditionally quite performant cards based on wider than 128-bit memory bus. Also 8GB is screaming "low end". So I'd say the 7600 should've been available at below 200$ (+taxes etc.) as soon as possible, at least for some cheaper SKUs.For faster cards, the situation is bad for AMD, because people spending like $400+ are usually fairly knowledgable and demanding. While personally I don't see any value in upscallers and RT for 400-700$ cards, the fact is that especially DLSS is a valuable feature for potential buyers. Therefore, even 7800 and 7900 cards should be significantly cheaper than they currently are. People knew what they were paying for when buying Radeon 9700, 9800, X800, 4870 etc. They were getting gaming experience truly unlike console or low-end PC gaming. By all means, let's have expensive AMD cards for even above $1000, but first, AMD needs to show value. Make the product attractive. PS5 consoles can be bought at 400$. If AMD offers just a slightly better upscalled image on the 400$ GPU, or their 900$ GPU cannot even push 3x as many fps compared to cheap consoles, the pricing acts like cancer on PC gaming. And poor old PC gaming can endure only so much.

MrCrimson29d ago

I appreciate your rant sir, but it has very little to do with gpus. It is the fact that the PS5 and Xbox are in end cycle before a refresh.

RonsonPL29d ago

Yes, but also no. AMD let their PC GPU marketshare to shrink by a lot (and accidentally helped the whole market shrink in general due to bad value of PC GPUs over the years) and while their console business may be important here, I'd still argue their profits from GPU division could've been much better if not for mismanagement.

bababooiy29d ago

This is something many have argued over the last few years when it comes to AMD. The days of them selling their cards at a slight discount while having a similar offering are over. Its not just a matter of poor drivers anymore, they are behind on everything.

RNTody29d ago (Edited 29d ago )

Great post. I went for a Nvidia RTX 3060Ti which was insane value for money when I look at the fidelity and frame rates I can push in most games including new releases. Can't justify spending 3 times what my card cost at the time to get marginal better returns or the big sell of "ray tracing", which is a nice to have feature but hardly essential given what it costs to maintain.

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30d ago Replies(1)
KwietStorm_BLM30d ago

Well that's gonna happen when you don't really try. I want to support AMD so badly and give Nvidia some actual competition but they don't very much seem interested in challenging, by their own accord. I been waiting for them to attack the GPU segment the same way they took over CPU, but they just seem so content with handing Nvidia the market year after year, and it's happening again this year with their cancelled high end card.

MrCrimson29d ago

I think you're going to see almost zero interest from AMD or Nvidia on the gaming GPU market. They are all in on AI.

RhinoGamer8830d ago

No Executive bonuses then...right?

enkiduxiv29d ago

What are smoking? Got to layoff your way to those bonuses. Fire 500 employees right before Christmas. That should get you there.

Tapani29d ago (Edited 29d ago )

Well, if you are 48% down in Q4 in your Gaming sector as they are, which in absolute money terms is north of 500M USD, then you are not likely to get at least your quarterly STI, but can be applicable for annual STI. The LTI may be something you are still eligible for, such as RSUs or other equity and benefits, especially if they are based on the company total result rather than your unit. All depends on your contract and AMD's reward system.

MrCrimson29d ago

Lisa Su took AMD from bankruptcy to one of the best semiconductor companies on the planet. AMD from 2 dollars a share to 147. She can take whatever she wants.

Tapani29d ago

You are not wrong about what she did for AMD and that is remarkable. However, MNCs' Rewards schemes do not work like "take whatever you want, because you performed well in the past".

darksky30d ago

AMD prcied their cards thinking that they will sell out just like in the mining craze. I suspect reality has hit home when they realized most gamers cannot afford to spend over $500 for a gpu.

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80°

Evercade Alpha Reveals Affordable Mini-Arcade

This looks fun and affordable for fans of Retro Cabinet games.
Introducing Evercade Alpha, the first Evercade-compatible arcade machine. This bartop-sized arcade gives you everything you want in a home arcade machine with one big feature - full compatibility with the Evercade cartridge ecosystem.

darthv722d ago

I like the Mega Man one more as it has a better variety of games. Strider, Carrier Airwing, Final fight... The other is all SF. Plus i like that i can pop in any of my evercade carts to play as well.

Garethvk2d ago

As long as it is durable; it's a deal.

300°

Sony Says The PS5 Is Its “Most Profitable Generation To-Date"

During Sony’s recent business segment meeting and investor presentation regarding its game and network services, the PlayStation company revealed that PlayStation 5 is the company’s “most profitable generation to-date.”

It’s the top slide of the presentation, showing that in its first four years, the PS5 generation has already hit $106 billion in sales, having almost caught up to the PS4’s total $107 billion generated.

Operating income for the PS5 generation has also already surpassed that of the PS4, having now reached $10 billion.

ApocalypseShadow2d ago (Edited 2d ago )

I wouldn't doubt it. They released a high quality system. A lot of high quality games from themselves and their support of 3rd party developers and indies. They released many high quality remakes and remasters. They released a high quality GaaS game going against the naysayers thinking Sony would abandon single player games. And they most likely are profiting a lot more than PS1, PS2 PS4 and the loss leading PS3 that drained all their profits.

Now, I'll wait to see what's cooking tomorrow. But can you use some of those profits to better support your high quality VR headset? Because, by supporting it, you can sell more games and more systems and make more profits?

jznrpg2d ago (Edited 2d ago )

I want RPGs for PSVR2! Good ones of course

shinoff21832d ago

If it had some rpgs I would buy right fking now. It looks dope and alot of fun, but it's biggest game resident evil 4(maybe) I've got no interest in. I'm not a fan of racing games, even with that metro game coming i was never much into that series. Rpgs would be fantastic.

MrNinosan2d ago

Lemme know if ya wanna play some Zenith 🙌
Bought it at release, but haven't played it more than 1-2 hours but for sure on my "todo list".

Cacabunga2d ago

Normal when they released mostly cross gen games so far. That’s a lot of money saved..
We haven’t seen what PS5 can do yet. 4years in and PS4 games still look great to me. The gen leap isn’t quite there yet.

--Onilink--2d ago

The interesting metric for me is the $106billion in operating income/profit (not sales as mentioned in the article) reaching the same as the PS4 did with only half the consoles sold.

In particular because they all are supposed to be making the most per hardware sold after a few years when manufacturing costs are down.

So even putting inflation aside(and the higher console price), it is interesting that they could reach PS4 $ with just half the consoles sold.

Maybe there is more to the metric thats whats seen at face value, but they have clearly been making a lot more money than before on the software side (with also less games released I suppose, given its only been half the generation so far)

VersusDMC2d ago

The bulk of the money has to be coming from the 30% cut on all games and microtransactions. Especially on all the free to play juggernauts like genshin, apex, fortnight, etc.

--Onilink--2d ago (Edited 2d ago )

@Versus

They are definitely making a lot on that for sure (which the $70 price increase factors into as well), but its not like many of those games werent around for the PS4 too.

They might be counting the gen as a whole and not just PS5 itself (so extra profit from PC sales, whatever that may be)

PS+ price increase and different tiers probably amount to part of that too.

But in general, its still quite a surprising metric. Half the time, half the consoles sold, less first party games released so far and still already making more of a profit than last gen is quite something, and as mentioned, there is probably more to it that we dont know, after all, since we are talking about operating income, all the expenses they have also factor into it, so it is also possible that they have found ways to significantly reduce that + all the means of increased revenue that appear to be factoring into the equation

All in all, just an interesting situation from a business perspective

porkChop2d ago

It's for the whole generation, so it would likely be including PC. They also make much more profit on digital sales vs retail, and digital is far more prominent these days. The generation also started at the height of COVID when everyone was home, spending far more money on gaming/hobbies. It makes a lot of sense for this gen to be more profitable.

Abnor_Mal2d ago

This will surely shut up all the new trolling accounts trying to spread lies and non facts in other articles comment sections before this article is posted.

Hofstaderman2d ago (Edited 2d ago )

Obscurely, those trolls or troll will not show in these articles as the truth is contradictory to his or their orchard-sized daily dose of copium and hopium.

Tacoboto2d ago

Or... They're intentionally trolling you guys specifically. Because they know it upsets you so easily.

Name-dropping Orchard, after this many months? How long has it been and he's still in your thoughts?

Elda2d ago (Edited 2d ago )

I'm quite sure the individual is reading these positive comments downvoting & seething at the same time. Edit: It just downvoted my comment...lol!!

Hofstaderman2d ago

No I'm entertained by this individual. I love unhinged people, they are so interesting lol.

repsahj2d ago

Wow! I am super impressed that in just 4 years, ps5 already caught up to the PS4's. Congratulations.

JackBNimble1d 21h ago

That happens when half of your games are cross platform. I'm still waiting to see what the ps5 is capable of, because they sure haven't pushed any limits.

And where are all these ps5 exclusive games?

sagapo2d ago

Not really surprised as Sony barely has any competition at the moment.

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80°

Zotac To Reveal Their Portable Gaming PC At COMPUTEX 2024

This sounds like a very interesting mobile gaming PC. ZOTAC returns to COMPUTEX 2024 to showcase its biggest push yet into brand-new product categories from Handheld Gaming.

smashman982d ago

My last 2 gpus have both been zotac. No issues. I'm interested.

Garethvk2d ago

It will be interesting to see what they have to offer