AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022 - The Verge

AMD’s Q2 2022 financial results break out its gaming business for the first time, including semi-custom chips that it produces for Sony’s PlayStation and Microsoft’s Xbox and its discrete graphics processors.

Today, we’re learning how big AMD’s gaming business is for the very first time — and the answer is $5 billion a year. That’s how much the company earned in 2021 from the “semi-custom” chips that go into Sony’s PS5, PS4, and every modern Microsoft Xbox, in addition to its discrete GPUs you’ll find in graphics cards and high-end gaming laptops.

It appears to have become quite a profitable business, too — nearly $1 billion in revenue in 2021 — and could exceed that this year: in an earnings call, CEO Lisa Su says the company typically sees its most money from game consoles in the third quarter, and it’s on track for “record semi-custom annual revenue in 2022.”

In 2020, AMD actually lost $138 million on gaming... but in just one year, operating income rose by over a billion dollars to hit $934 million in 2021. Late 2021 is when Sony started turning a profit on the PlayStation 5, though Sony still has supply constraints; Microsoft generally doesn’t turn a profit on the Xbox itself, though AMD almost certainly would as a chip supplier.

This quarter, AMD’s gaming revenue is up 32 percent year over year.

Gaming revenue for 2021: $5.6 billion.

That’s all according to the company’s Q2 2022 earnings, as you can see in the slide above. As we mentioned in May, this is the first quarter that the company’s broken out gaming into its own financial segment: previously, game console revenue was lumped in with embedded and data center, and GPUs were lumped in with CPUs.

Post ID: 0acbfff6-2e74-456a-a458-c0ddd27a9a4b
Rating: 1
New York, New York

Seattle, Washington
Member since Feb 2021

Similar classified ads

Randy's other ads