AMD Achieves Milestone of Over 100 Million Gaming Consoles Sold This Generation

AMD Achieves Milestone Amid Mixed Earnings Report

Advanced Micro Devices (AMD) recently disclosed in their Q4 Earnings Call that the current console generation has yielded impressive results, with cumulative shipments exceeding 100 million units by the end of the fourth quarter. These shipments consist of semi-custom processors, which are essential for powering a majority of contemporary gaming consoles, including the PlayStation 4, PlayStation 5, and the Steam Deck. Despite this significant achievement, AMD’s gaming revenue figures drew attention away from their impressive shipment numbers.

Decline in Gaming Revenue

In a rather stark contrast, AMD’s gaming revenue saw a dramatic 59% decline year-over-year, recording $563 million for the quarter ending December 2024. This drop is particularly noticeable when set against the previous year’s revenue of $1.4 billion during the same period. However, AMD’s overall revenue reached a record $7.7 billion, marking a 24% increase year-over-year, largely attributed to robust growth in their Data Center and Client segments.

Shifting Focus and Future Expectations

Interestingly, the company reported that annual revenue in its Data Center segment nearly doubled, and Client Segment revenue surged by 52%, helping to mitigate the downturn in the Gaming sector. AMD CEO Lisa Su emphasized her expectation that the decline in gaming revenue would be less pronounced moving forward compared to other business segments. Furthermore, she noted that channel inventories have stabilized and that semi-custom sales are returning to historical norms.

Innovations in Gaming Technology

During the Earnings Call, Su also outlined future plans for AMD’s gaming division. She stated, “Our focus with this generation is to address the highest volume portion of the enthusiast gaming market with our new RDNA 4 architecture. RDNA 4 delivers significantly better ray tracing performance and adds support for AI-powered upscaling technology, bringing high-quality 4K gaming to mainstream players.”

Looking Ahead

AMD anticipates “modest increases”in both their Gaming and Embedded businesses. For the upcoming financial year, the company plans to merge the Client and Gaming segments into a unified category. Projections indicate revenue reaching approximately “$7.1 billion plus or minus $300 million, ”reflecting a 30% year-over-year growth driven by expanding Data Center and Client operations.

Potential in Handheld Gaming

Despite the successful fourth quarter of 2024, there remains a consistent expectation of revenue decline within the gaming segment. However, AMD might benefit from the growth of handheld gaming PCs. The potential release of a new Steam console could further position AMD advantageously, given its likelihood to utilize AMD components.

Source & Images