AMD's gaming revenue nosedives 48%, not expected to recover until 2025

Draugoth

Draugoth

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AMD's gaming solutions revenue decreased by 48% year-over-year in the first quarter of 2024 as sales of the company's processors for Sony's and Microsoft's game consoles declined and demand for Radeon discrete graphics cards lessened. The company expects its gaming revenue to decline further in the second quarter and for the rest of the year before it has a chance to rebound in 2025.


www.tomshardware.com

AMD's gaming revenue nosedives 48%, not expected to recover until 2025 — lack of interest in RDNA 3 coupled with fewer console sales

So, no RX 8000-series GPUs coming this year?
www.tomshardware.com www.tomshardware.com

AMD's gaming business earned $922 million in Q1 2024 — down 48% year-over-year (from $1.757 billion) and down 33% quarter-over-quarter (from $1.368 billion). AMD's gaming segment still posted an operating income of $151 million, but that's a significant decline from $314 million a year ago. As a percentage of revenue, the gaming unit's operating income totaled 16% in Q1 2024 and 18% in Q1 2023.

"First quarter semi-custom SoC sales declined in line with our projections as we are now in the fifth year of the console cycle," said AMD CFO Jean Hu on a conference call with analysts and investors (via SeekingAlpha). "In gaming graphics, revenue declined year-over-year and sequentially. We expanded our Radeon 7000-series family with the global launch of our Radeon RX 7900 GRE and also introduced our driver-based AMD Fluid Motion Frames technology that can provide large performance increases in thousands of games."
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Rebound only in 2025, that probably means the rumours that RDNA4 will only release in 2025, might actually be true.
 
More and more companies now depend on GTA VI to save them ... AMD, Sony, Xbox, Asus, MSI, Gigabyte, etc etc
 
I still can't believe they haven't scored the Stargate contract yet.

winjer said:
Nah, that is the price Nvidia sets for their GPUs.
AMD will set the price at $2,989, then wonder why they don't sell.
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$2,949 seems more in line with AMD. LOOK, you save $50!

Not Bad Kind Of GIF by MOODMAN
 
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They should give up trying to compete with nvidia on the high end and just focus on delivering the best mid/low end cards and at a cheaper price. $500 is the sweet spot for GPUs and they should put all their effort into that tier and below.
 
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JohnnyFootball said:
Right....because their CPUs have been selling poorly as of late.

AMD is overall in great shape, despite the 9000 series CPUs looking underwhelming.
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console is probably AMD big customer.

Its pretty obvious the PC gaming industry unable to sustain AMD business.
 
The Cockatrice said:
intel sucks, amd fails, nvidia switching to AI. What the fuck PC bros?
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Nvidia leads the market for AI, with 80-85%. So they have all the reasons to invest heavy on that, leaving gamming as an afterthought.
AMD gets the scrap,s with 10-15% of the AI market. Still a lot of money, so gaming also becomes and afterthought. For example, we just saw how Zen5 is a beast for AI and server workloads, but barely improves in gaming.
Intel is just screwing around. They have almost nothing in the AI market, the CPUs are dying, the GPU drivers still have issues, and the stocks dropped of a cliff.
 
winjer said:
Nvidia leads the market for AI, with 80-85%. So they have all the reasons to invest heavy on that, leaving gamming as an afterthought.
AMD gets the scrap,s with 10-15% of the AI market. Still a lot of money, so gaming also becomes and afterthought. For example, we just saw how Zen5 is a beast for AI and server workloads, but barely improves in gaming.
Intel is just screwing around. They have almost nothing in the AI market, the CPUs are dying, the GPU drivers still have issues, and the stocks dropped of a cliff.
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Sad Season 2 GIF by Friends


Not like games are getting better either. Better stock up on that backlog.
 
lh032 said:
console is probably AMD big customer.

Its pretty obvious the PC gaming industry unable to sustain AMD business.
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Ironically, the console industry is also not able to sustain AMDs business.

The company is largely carried by their data center stuff and Xilinx (FPGAs and SoC stuff)
 
It's not just Raedeon DYI but also the console market, especially if you look into Microsoft fiscals

Just to give a bit on insight, as I was on the investor call (I own AMD shares since 2013) the Gaming Division is seeing a low as we close at the end of the generation of current GPUs. Also console market is a bit down especially from Xbox side, however Sony does indeed expect more sales come 2025 because of GTA VI and other heavy hitter PS titles.

It does seem 2025-2026 will be major years as most cross gen games like COD and some other will stat moving to the new generation exclusively.

Remember 40% of the folks are still on the PS4.

winjer said:
Rebound only in 2025, that probably means the rumours that RDNA4 will only release in 2025, might actually be true.
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Yep looks like CES announcement with focus on the mid end.
 
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Kinda expected halfway through a console gen for them.

Theres also big stuff happening soon:
Late '24 - early '25 - PS5 Pro + RDNA 4
2026 - RDNA 5 + rumored Next XBox
2028 - PS6

They'll be fine.
 
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winjer said:
Nah, that is the price Nvidia sets for their GPUs.
AMD will set the price at $2,989, then wonder why they don't sell.
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Even if AMD have lower prices it won't sell, people want cheaper AMD GPUs so Nvidia has to lower the price so they can get cheaper Nvidia gpus
 
SantaC said:
AMD needs to release a highend GPU again.

sadly RDNA4 is only budget cards
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I'm guessing they want to and are going to. But they can't afford to hype up and release something not competitive with Nvidia again.
 
We are in that mid point in the generation where you can match or exceed console performance at a semi-decent price and have been there for a while. Combining that with the fact that the jumps in price to performance haven't been as big on the lower-mid cards recently and it seems reasonable for a bit of a slowdown.
 
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lh032 said:
console is probably AMD big customer.

Its pretty obvious the PC gaming industry unable to sustain AMD business.
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IMG-0906.jpg


AMD is unable to compete because their tech stinks. They are the Xbox of the GPU space. Buy Nvidia and get a bunch of exclusive features + better driver support + you can use all AMD features anyway. Only reason to buy AMD is because they are slightly cheaper.
 
BennyBlanco said:
IMG-0906.jpg


AMD is unable to compete because their tech stinks. They are the Xbox of the GPU space. Buy Nvidia and get a bunch of exclusive features + better driver support + you can use all AMD features anyway. Only reason to buy AMD is because they are slightly cheaper.
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Basically AMD needs a 20% discount to equivalent Nvidia card for it to make sense. Or they need to get their shit in order on feature parity beyond rasterization.
 
winjer said:
On a positive note, AMD is offering 2 games with 7000 series GPUs. Warhammer 40,000: Space Marine 2 & Unknown 9 Awakening.

So it's basically a free Benjamin.
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Yeah, and you can grab 7900 XTX for $900 on sale. Personally I would still stick with a 4080 if you could get it for $1000.
 
MacReady13 said:
It's why I love Nintendo so much. Do there own thing and they can escape all this bullshit.
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I think Nintendo and Sony are better off than other companies. Nintendo completely does its own thing, Sony kind of but it works. MS and many pc hardware manufacturers need to innovate somehow
 
They need to lower the prices on their GPUs. Not to say they're not good, I was rocking an R9 380X for a while but even new that GPU was in the $200 range. I understand that it may not be possible to do so but trying to compete with nvidia price for price is not working for them.
 
The solution for AMD is simple, stop trying to form a pricing cartel with fucking Nvidia that has always been a greedy fucking corp and bring back your prices to reasonable levels. AMD GPUs have always been value for money for anyone that doesn't waste their money to buy super expensive graphics cards, that is until the last few years. They deserve this shit
 
SantaC said:
AMD needs to release a highend GPU again.

sadly RDNA4 is only budget cards
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AMD needs to price their high end cards better. The 7900XTX should have been $800 and the 7900XT should have been $650.

They seem to live in this fantasy world that just because nvidia can charge high prices on their GPU that they can too.

The strategy seems to be to price high and shortly drop the price later. The strategy has not gained them marketshare. So...why not lose a little margin in the short term from the Day 1 buyers and price better and get a lot more potential customers.
 
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