AMD has simply introduced that the income from its Gaming phase has dropped by a large 59% in comparison with this era final 12 months. The Gaming division is the a part of the corporate chargeable for gaming GPUs, not solely the AMD Radeon chips used for PC graphics playing cards, but additionally the {custom} chips the agency makes for consoles, such because the PlayStation 5, and gross sales are evidently in decline.
It’s the latter that AMD has particularly pinpointed as being a driving issue within the decline of gross sales in its newest monetary assertion. In the meantime, AMD’s Radeon GPUs nonetheless energy a few of the finest graphics card fashions you should purchase proper now, together with the Radeon RX 7800 XT, however the firm has struggled to maintain tempo with Nvidia on ray tracing and upscaling.
These newest gross sales figures are revealed in AMD’s second quarter 2024 monetary outcomes, and present the Gaming phase’s income standing at $648 million, dropping all the best way from $1,570 million in the identical interval in 2023, and falling by 30% sequentially in comparison with the earlier quarter.
AMD primarily attributes the drop in gross sales to a “lower in semi-custom income,” referring to the system-on-chip (SoC) units AMD makes for purchasers reminiscent of Sony and Microsoft for his or her PlayStation 5 and Xbox Sequence X consoles respectively.
These chips not solely embrace a Radeon GPU, but additionally a number of of the Zen CPU cores utilized in AMD’s processors. This drop isn’t fully shocking, provided that each these consoles have been out for practically 4 years now, though the forthcoming PlayStation 5 Professional GPU can be extensively rumored to be made by AMD.
The opposite a part of the equation is, after all, the Radeon GPUs AMD makes for desktop graphics playing cards and laptops, and whereas AMD hasn’t damaged down Radeon GPU gross sales in comparison with these of semi-custom SoC units, their poor displaying within the June Steam Survey suggests AMD isn’t promoting an enormous variety of them.
There isn’t a single AMD Radeon GPU within the prime 15 graphics playing cards within the present survey, for instance, and it’s important to learn all the best way to quantity 57 earlier than you discover the primary discrete graphics card based mostly on the corporate’s newest RDNA 3 structure, the Radeon RX 7900 XTX. Comparatively, the Nvidia RTX 4060 desktop and laptop computer variations are each within the prime 10 right here.
This isn’t the primary time we’ve seen disappointing gross sales for AMD’s Gaming phase currently. The AMD Q1 2024 monetary outcomes confirmed a 48% decline in comparison with the identical interval in 2023 as properly. Within the report for these outcomes, AMD particularly talked about “decrease AMD Radeon GPU gross sales,” which isn’t talked about within the newest report, suggesting that a lot of the decline in income on this quarter is coming from {custom} SoC units, somewhat than Radeon graphics playing cards.
On the plus aspect for AMD, the remainder of the corporate seems to be doing properly, with an general 9% improve in income 12 months on 12 months, due to file figures in its information heart division, in addition to robust gross sales of Ryzen CPUs.
The following large launch from the agency would be the launch of its AMD Zen 5 vary of CPUs, and you may try the leaked Ryzen 9000 costs proper now, due to some listings that not too long ago appeared on Finest Purchase.
