Drop in sales of Radeon consoles and GPUs shrinks AMD’s Gaming sector

AMD presented its financial statement for the last fiscal year and the company’s Gaming sector, between Radeon graphics cards and products with AMD SoCs, had revenue 48% lower than the previous year. According to AMD’s Executive VP and CFO, Jean Hu, the results mainly reflect the low demand for AMD Radeon graphics cards and the PlayStation 5 and Xbox Series X and Series S consoles.

Despite this being a revenue of US$922 million, the numbers still point to a consecutive quarterly drop of 33%, a worrying but predictable figure, given that the current generation of consoles is entering its fifth year and is heading towards its end. of your cycle.

“The first quarter of semi-custom SoC sales fell in line with our projections, as we are now in the fifth of the console cycle [PS5 e Xbox Series]”, said Lisa Su, President and CEO of AMD.

Not very expressive generation of consoles

Although the current generation still has 2 to 4 years to go, the peak of interest has passed and the tendency is for sales to continue to fall. This places the PlayStation 5 and Xbox Series X and Series S as the least popular recent generation of consoles.

Even though the PS5 has sold around 50 million units, the numbers are still less than half of the PS4’s 117 million and are even behind the Xbox One’s 58 million, a failure that led Microsoft to change its strategy for the sector .

With the growing interest in portable consoles, both Sony and Microsoft have already hinted at the possibility of entering the segment in the next generation, in addition to traditional platforms. If companies opt for AMD solutions, this could be a good sign for Lisa Su’s company, which already equips Lenovo Legion Go, ASUS ROG Ally and Steam Deck laptops.

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