AMD CFO during earnings call: "If you look at gaming, demand has been quite weak"

[Puff]

From their official report:

• Gaming segment revenue was $922 million, down 48% year-over-year and 33% sequentially due to a decrease in semi-custom revenue and lower AMD Radeon™ GPU sales.

For the quarter, however, AMD reported muted financial results. In the first quarter, AMD’s revenue increased to $5.5 billion, as results were dragged down by weakness in gaming as console sales for the PlayStation 5 and Xbox Series X/S enter their fifth year in the market

If you look at gaming, demand has been quite weak. That’s well known. Also [they have] inventory issues. We guided down more than 30% in the first and second quarters, and the second half will be lower than the first half. That is how we are looking for the gaming business this year,” Hu said.

https://venturebeat.com/ai/amd-ceo-foresees-sustained-growth-driven-by-insatiable-demand-for-ai/

 

[Etifilio]

i blame Sony themselfs for porting their system seller exclusive games to PC and making their hardware useless, that's why they've been missing sales targets

 

[anonpuffs]

i blame Sony themselfs for porting their system seller exclusive games to PC and making their hardware useless, that's why they've been missing sales targets

That's a good point. Consoles are 100% AMD products, whereas PC now are mostly nvidia gpus and maybe 85%+ AMD cpus.

 

[thicc_girls_are_teh_best]

It sounds like they're mostly blaming Microsoft without directly naming them, because inventory has been a big problem with Xbox Series for months now.

However, we have seen PS5 sales dropping in Japan, and it's possible that, even if just a little bit, demand at this point is a bit softer launch-aligned than was for the PS4.

IF so, I wonder if a certain implementation of a multiplatform strategy with a platform the ex-SIE CEO named as a competitor could be partly to blame ?...

 

[mibu no ookami]

It sounds like they're mostly blaming Microsoft without directly naming them, because inventory has been a big problem with Xbox Series for months now.

However, we have seen PS5 sales dropping in Japan, and it's possible that, even if just a little bit, demand at this point is a bit softer launch-aligned than was for the PS4.

IF so, I wonder if a certain implementation of a multiplatform strategy with a platform the ex-SIE CEO named as a competitor could be partly to blame ?...

Sony has also had inventory issues. There is no way they planned on having these Spider-Man 2 bundles in the new fiscal year. They probably hoped to sell out of them in the previous quarter.

 

[Systemshock2023]

Maybe if you stopped colluding between cousins demand could be better right? AMD released some of the most embarassing GPUs of all time since 2019.

 

[Puff]

However, we have seen PS5 sales dropping in Japan, and it's possible that, even if just a little bit, demand at this point is a bit softer launch-aligned than was for the PS4.

IF so, I wonder if a certain implementation of a multiplatform strategy with a platform the ex-SIE CEO named as a competitor could be partly to blame ?...

Sony has been trying everything to sabotage the PS5

 

[mibu no ookami]

It sounds like they're mostly blaming Microsoft without directly naming them, because inventory has been a big problem with Xbox Series for months now.

However, we have seen PS5 sales dropping in Japan, and it's possible that, even if just a little bit, demand at this point is a bit softer launch-aligned than was for the PS4.

IF so, I wonder if a certain implementation of a multiplatform strategy with a platform the ex-SIE CEO named as a competitor could be partly to blame ?...

The PS5 has yet to have a price cut, in fact it has increased in price. The PS4 dropped to 299.99 3 years after launch AND the PS4 Pro launched 3 years later too.

The PS5 Pro won't release until a full 4 years in the cycle.

If you're going to compare launch aligned it's pretty key to keep things in mind.

IF the PS5 Pro launches this fall for 500 dollars and the base model PS5 drops to 400 dollars and the digital drops to 350, I would expect it to have an extremely healthy holiday season compared to the PS4 in its 4th year.

 

[Danja]

The PS5 has yet to have a price cut, in fact it has increased in price. The PS4 dropped to 299.99 3 years after launch AND the PS4 Pro launched 3 years later too.

The PS5 Pro won't release until a full 4 years in the cycle.

If you're going to compare launch aligned it's pretty key to keep things in mind.

IF the PS5 Pro launches this fall for 500 dollars and the base model PS5 drops to 400 dollars and the digital drops to 350, I would expect it to have an extremely healthy holiday season compared to the PS4 in its 4th year.

PS5 is not outselling PS4 launch aligned this holiday season. They'll probably top out around 95 - 100 million this generation or even lower

 

[mibu no ookami]

PS5 is not outselling PS4 launch aligned this holiday season. They'll probably top out around 95 - 100 million this generation or even lower

That's a pretty wild conclusion to draw to, one which you'll certainly not back up once you're wrong.

A lot comes down to price and competition.

By the end September of 2017 the PS4 was at 67.5 million units. By the end of December 2023, we know the PS5 hit 50 million units.

By the end of 2017 they hit 73.6 million units. It'll definitely require a low price for the PS5 Pro and price cuts for the standard unit for them to sell 23.6 million units between January and December. It's definitely a tall order.

The other thing you're clearly ignoring is the impact of GTA6 in the face of a console exclusive for probably at least a year and a dead Xbox in 2025.

I'd love how to see how you're doing your math to get to 95-100 million or lower...

 

[Systemshock2023]

RX 5500
RX 6400
RX 6500
RX 6500 XT
RX 580 2048 SP
8600G
8700G

Those are to blame. Not consoles. Nvidia is handling AMD the entry level and mainstream segments on a silver platter and they keep dropping the ball. Intel is going to eat their lunch.

 

[Danja]

That's a pretty wild conclusion to draw to, one which you'll certainly not back up once you're wrong.

A lot comes down to price and competition.

By the end September of 2017 the PS4 was at 67.5 million units. By the end of December 2023, we know the PS5 hit 50 million units.

By the end of 2017 they hit 73.6 million units. It'll definitely require a low price for the PS5 Pro and price cuts for the standard unit for them to sell 23.6 million units between January and December. It's definitely a tall order.

The other thing you're clearly ignoring is the impact of GTA6 in the face of a console exclusive for probably at least a year and a dead Xbox in 2025.

I'd love how to see how you're doing your math to get to 95-100 million or lower...

Sony wanted the PS5 to be at 63 million by the end of March this year. Given their resistance to actual price cuts this generation and they aggressive push t devalue their platform and sales demand. Unless 2025 is an absolute killer year and sales trend reverses, good luck yeah 100 million might be the ballpark.

After all 107 million for the generation was Jim's estimate. GTA VI will move hardware but you're acting the game isn't coming in the 5th year when the PS5 would have already sold 70 - 80% of its sales.

 

[anonpuffs]

RX 5500
RX 6400
RX 6500
RX 6500 XT
RX 580 2048 SP
8600G
8700G

Those are to blame. Not consoles. Nvidia is handling AMD the entry level and mainstream segments on a silver platter and they keep dropping the ball. Intel is going to eat their lunch.

Those cards don't have anything on shit like the 3050 6gb, 1060 3gb and all manner of other shitty parts that nvidia put out

 

[Systemshock2023]

Those cards don't have anything on shit like the 3050 6gb, 1060 3gb and all manner of other shitty parts that nvidia put out

1060 3GB was decent at the time even with that limited VRAM. 3050 is a weak card but low profile and very power efficient. AMD released absolute trash cards. Underpowered, inefficient, worse upscalling solution. More VRAM is their saving grace in some cases.

And those IGPUs all tech youtubers were raving about, they are 75 USD too expensive for what they offer.

 

[mibu no ookami]

Sony wanted the PS5 to be at 63 million by the end of March this year. Given their resistance to actual price cuts this generation and they aggressive push t devalue their platform and sales demand. Unless 2025 is an absolute killer year and sales trend reverses, good luck yeah 100 million might be the ballpark.

After all 107 million for the generation was Jim's estimate. GTA VI will move hardware but you're acting the game isn't coming in the 5th year when the PS5 would have already sold 70 - 80% of its sales.

• Sony being resistant to price cuts doesn't mean there won't be one at all
  • I totally expect the PS5 will drop in price in the face of the PS5 Pro
  • It will probably drop in price again with the PS6
  • The PS5 will be widely available at the end of its cycle and into the PS6 product life cycle unlike the PS4 that couldn't be supported because of supply chain priorities
• There hasn't been an aggressive push to devalue their platform, that is fanboy talk
• 2025 is going to be an absolute killer year as we know GTA6 is coming out, the PS4 never had a new GTA game, let alone essentially an exclusive one
• Jim Ryan never estimated 107, you're misquoting him
  • He said he was confident it could sell AT LEAST 108 million units, the key word there being at least
• The PS5 is going to have a longer product life cycle than the PS4 as mentioned above

Your analysis discounts the PS5 Pro, price cuts later in the product life cycle, an extended product life cycle, and what will almost certainly be the biggest game of the generation that will probably sell 80 percent or more on PS5... GTA5 sold 32.5 million units in its first year. If GTA6 launches with an online component, everyone is going to buy a PS5 to upgrade to play it. Over 140 million copies of GTA5 sold...

Your analysis is really poor here and it'll be fun to hear your excuses when the PS5 sells well over 100 million unlike the less that you suggested.

 

[Etifilio]

PS5 is not outselling PS4 launch aligned this holiday season. They'll probably top out around 95 - 100 million this generation or even lower

if the PS5 doesn't surpass the 100M mark every PS console (besides 3) surpassed, we can safely say it's over and it's only going downhill moving forward

 

[Etifilio]

• Sony being resistant to price cuts doesn't mean there won't be one at all
  • I totally expect the PS5 will drop in price in the face of the PS5 Pro
  • It will probably drop in price again with the PS6
  • The PS5 will be widely available at the end of its cycle and into the PS6 product life cycle unlike the PS4 that couldn't be supported because of supply chain priorities
• There hasn't been an aggressive push to devalue their platform, that is fanboy talk
• 2025 is going to be an absolute killer year as we know GTA6 is coming out, the PS4 never had a new GTA game, let alone essentially an exclusive one
• Jim Ryan never estimated 107, you're misquoting him
  • He said he was confident it could sell AT LEAST 108 million units, the key word there being at least
• The PS5 is going to have a longer product life cycle than the PS4 as mentioned above

Your analysis discounts the PS5 Pro, price cuts later in the product life cycle, an extended product life cycle, and what will almost certainly be the biggest game of the generation that will probably sell 80 percent or more on PS5... GTA5 sold 32.5 million units in its first year. If GTA6 launches with an online component, everyone is going to buy a PS5 to upgrade to play it. Over 140 million copies of GTA5 sold...

Your analysis is really poor here and it'll be fun to hear your excuses when the PS5 sells well over 100 million unlike the less that you suggested.

i doubt PS5 will surpass PS4, PS4 had exclusive games, real exclusive games that were Only On PlayStation during the entire generation, PS5 will probably surpass PS1 tho, but after that, i think it'll be really hard for PlayStation to ever reach 100M+ with another console for multiple reasons

 

[mibu no ookami]

i doubt PS5 will surpass PS4, PS4 had exclusive games, real exclusive games that were Only On PlayStation during the entire generation, PS5 will probably surpass PS1 tho, but after that, i think it'll be really hard for PlayStation to ever reach 100M+ with another console for multiple reasons

And what will you say if the PS5 does surpass the PS4 despite Sony's support for releasing their titles on PC?

Nothing right?

 

[Nhomnhom]

GPU market has never been this boring before.

 

[Etifilio]

And what will you say if the PS5 does surpass the PS4 despite Sony's support for releasing their titles on PC?

Nothing right?

i'll say i was wrong, but again, i doubt it, there's 4 more years til PS6 and they're missing sales targets