AMD’s gaming GPU gross sales are formally plummeting

AMD has simply introduced that the income from its Gaming section has dropped by an enormous 59% in comparison with this era final 12 months. The Gaming division is the a part of the corporate answerable for gaming GPUs, not solely the AMD Radeon chips used for PC graphics playing cards, but in addition 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 among 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 section’s income standing at $648 million, dropping all the way in which 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) gadgets AMD makes for purchasers corresponding to Sony and Microsoft for his or her PlayStation 5 and Xbox Collection X consoles respectively.

These chips not solely embody a Radeon GPU, but in addition a number of of the Zen CPU cores utilized in AMD’s processors. This drop isn’t fully shocking, on condition that each these consoles have been out for almost 4 years now, though the forthcoming PlayStation 5 Professional GPU can also be broadly 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 gadgets, their poor exhibiting 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 way in which to quantity 57 earlier than you discover the primary discrete graphics card primarily based 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 section currently. The AMD Q1 2024 monetary outcomes confirmed a 48% decline in comparison with the identical interval in 2023 as effectively. 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 many of the decline in income on this quarter is coming from {custom} SoC gadgets, slightly than Radeon graphics playing cards.

On the plus aspect for AMD, the remainder of the corporate seems to be doing effectively, with an general 9% improve in income 12 months on 12 months, because of file figures in its information middle division, in addition to sturdy gross sales of Ryzen CPUs.

The subsequent huge launch from the agency would be the launch of its AMD Zen 5 vary of CPUs, and you’ll take a look at the leaked Ryzen 9000 costs proper now, because of some listings that lately appeared on Finest Purchase.