Credits: AMD

AMD’s new fiscal report, for the first quarter of this year, reveals that the company recorded 48% drop in revenue in the gaming segment compared to the same period last year. Profit fell from US$1.8 billion to 922 million in one year.

One of the biggest reasons that led to this huge drop in profits in AMD’s gaming division was the low sales of Radeon GPUs. In addition to video cards, the division also includes the chips that equip the PS5 and Xbox Series X|S consoles.

According to the company, recovery is only expected for 2025. For the first half of this year, they expect a drop of around 30% compared to the same period last year and even worse results in the second half of 2024.

AMD/receita gamingAMD/receita gaming
Image: AMD

This forecast from AMD suggests that the Radeon RX 8000 (RDNA 4) GPUs may not be launched this year, or that the launch will take place with low stock, insufficient to impact revenue.

Not even new launches prevented falls in AMD’s profits

Compared to the previous quarter (October to December 2023), the drop in profits was 33%. Even with the launch of the Radeon RX 7900 GRE and AMD Fluid Motion Frames (frame generator) via driver, it was not possible to avoid this drop in profits.

“In gaming graphics, revenue fell year over year and sequentially. We expanded our Radeon 7000 series with the global launch of the Radeon RX 7900 GRE and also introduced our AMD Fluid Motion Frames driver technology, which can deliver huge performance increases in thousands of games,” said CFO Jean Hu.

AMD Radeon RX 7900 GREAMD Radeon RX 7900 GRE

The PlayStation 5 and Xbox Series fewer chips.

A curious fact is that, in the latest survey by the research company Jon Peddie Research, it was revealed that AMD was the only one of the three companies (along with Intel and NVIDIA) to record growth in the graphics card segment, leading to 19% of the share of this market.

Another segment that recorded a drop in the first quarter of 2024 was SoCs (Embedded), falling 46% compared to the same period in 2023. The customer segments (largely notebooks) and data centers grew 85% and 80%, respectively.

Via: Tom’s Hardware

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