A 48% YoY decline for the first quarter of 2024
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.
Consoles and GPUs down
It's believed that system-on-chips (SoCs) for Microsoft's Xbox Series X|S and Sony's PlayStation 5 account for the lion's share of AMD's gaming business. These consoles are now in their fifth year on the market, so demand for these products is understandably waning. That's why the platform holders have reduced their purchases of AMD processors.
When it comes to sales of discrete GPUs, the situation is a bit more complex. Sales of add-in-boards for desktops decline seasonally in the first quarter every year. While AMD gained market share in Q4 2023, controlling 19% of the market, according to Jon Peddie Research, the company obviously sold fewer Radeon GPUs for desktops in Q1 2024.
Moreover, the company did not have big design wins with its Radeon RX 7000M GPUs for laptops — which dramatically impacted its gaming revenues as, volume-wise, such GPUs typically sell in similar quantities as those for desktops.
8 Comments
And then there’s rumors the RX 8000 series is going to be mid range only no high end. Ouch.
Price to performance on gpus even from amd just isn’t that exciting right now and pretty much everyone that wanted a ps5/xsx/xss already have one. It doesn’t help that everyone is focused on ai rather than gaming right now.
Whole desktop PC gaming market is on a current decline. Same goes for most income dependent consumer hobbies.
NVIDIA has all but abandoned desktop GPUs since they are now one of the most valuable companies in the world because of AI GPUs and will be supply constrained for a few years.
Laptops are the worst affected by this, and you can also see these trends recently. Laptops are actually getting closer and closer to desktop value level these days since the cost to manufacture gets closer to zero over the component costs, and the more integrated design saves money.
Even mini PCs, which are just laptops minus the screen and battery, have cannibalized a large portion of the desktop PC market. You can buy a [brand new 8 core, 16GB, 1TB SSD computer for $210](https://i.imgur.com/rb5wm9G.png). This will do anything the normal person ever needs to do when they interact with a computer outside games or professional work.
I’m guessing 2025 will be the next Xbox/Playstation using AMD?
The problem is AMD playing stupid with GPU prices and also the damn memory mafia gouging us. Can’t build a PC now, because an SSD is like $100+ for 1TB!
The 7900XTX should have lowered to $800 to compete with the 4070ti Super, but instead it remains around $900+, making the 4080 Super look better in comparison. The 7900XT should have been $600 or $650 to beat out the 4070ti Super and regular 4070 Super. The 7900 GRE right now looks like a joke trying to compete against the 4070 Super, being only marginally better at similar price and worse in RT and power consumption.
6800XT is still $480-$500! WHY?! Liquidate that, bring the 7800XT down to $399 ($400) and 7700XT to $299 ($300). And bring the 7600 to $199 and 7600XT to $250! Stop trying to compete against Nvidia with price. This entire stupid competition is only letting Intel gain more ground and Nvidia out pace AMD.
Surprising considering Everybody and Their dad bought an R7 7800X3D.