Video games consoles now ship totally one quarter of AMD’s revenues
On: March 2, 2023
The standard view has all the time been that video games consoles have been a helpful however comparatively petite contribution to AMD’s total revenues. Seems that is not solely true. In actual fact, Sony’s PS5 alone represented totally 16% of AMD’s revenues in 2022 and sure 1 / 4 of revenues got here from Sony and Microsoft consoles mixed.
That is based on an official AMD submitting (through Tom’s {Hardware}). “One buyer accounted for 16% of our consolidated internet income for the yr ended December 31, 2022. Gross sales to this buyer consisted of gross sales of merchandise from our Gaming section,” the submitting revealed.
That buyer can solely actually be Sony and the PS5, which comfortably outsells the Xbox Sequence consoles. In fact, AMD wasn’t simply liable for the PS5’s APU, it additionally created the chips for each Microsoft’s Sequence X and S consoles.
Estimates of total volumes to this point for each consoles put Sony’s PS5 roughly within the 30 million to 32 million vary, with the MS Sequence consoles on a bit of over 20 million.
AMD hasn’t detailed revenues particularly for Microsoft consoles, however based mostly on these numbers, if 30 odd million console chips is 16% of AMD’s enterprise, one other 20 odd million might be roughly 10% and mixed you are within the area of 25% of AMD’s revenues comes from these gaming consoles. Throw within the Steam Deck, additionally packing a chip from the pink crew’s semi-custom silicon division, and that is possibly a conservative estimate.
AMD’s gaming income total, together with each console chips and GPUs for PCs, was down 7% in 2022. We all know that PC GPU gross sales fell dramatically final yr, so the comparatively modest 7% decline total displays these sturdy console chip gross sales, with AMD’s CEO Lisa Su observing that, “semi-custom SoC income grew year-over-year as demand for game consoles remained sturdy throughout the holidays.”
Nevertheless, with each the Sony PS5 and MS Sequence consoles maturing, these revenues are prone to decline in 2023 and past, as gross sales plateau or fall and console makers are inclined to pay much less for chips over the life cycle of a given platform.
AMD’s graphics playing cards appear to be an ever shrinking a part of its total enterprise. (Picture credit score: Future)
For the document, AMD generated a complete of $6.8 billion income from gaming chips, $6 billion from knowledge middle chips, $6.2 billion from PC processors, and $4.5 billion from embedded chips.
That $6 billion from the information middle in 2022 is getting on for double what AMD made in 2021. So, the corporate’s fortunes are shifting quickly, right away, away from laptops and desktops, together with gaming rigs, in the direction of knowledge middle {hardware} and consoles.
These things is inevitably cyclical. Having gone by fairly the improve cycle over the pandemic, gross sales of CPUs and GPUs have cratered. For these avid gamers who purchased Nvidia RTX 30-series and AMD RX 6000-series GPUs or Intel twelfth Gen CPUs or AMD Ryzen 5000-series chips in the previous couple of years, the very newest {hardware} arguably is not massively compelling, particularly given how graphics card costs have escalated.
No matter, right away the nice outdated gaming PC appears very very similar to a minority enterprise for AMD. Which is a barely uncomfortable place for PC avid gamers hoping for higher future {hardware} at decrease costs.
