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[ArtHands]

AMD CEO foresees sustained growth driven by insatiable demand for AI

AMD CEO Lisa Su said it's an exciting time for the industry as the widespread deployment of AI is driving demand for computing power.

venturebeat.com

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.

In fact, gaming demand is down “a lot,” said AMD CFO Jean Hu, in the analyst call.


“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.

Revenue was $1.4 billion, an increase of 85% year-over-year driven by strong demand for the latest generation Ryzen mobile and desktop processors with OEMs and in the channel. Client segment revenue declined 6 percent sequentially.


“We saw strong demand for our latest generation Ryzen processors in the first quarter,” Su said.


Ryzen desktop CPU sales grew by a strong double digit percentage year-over-year and Ryzen mobile CPU sales nearly doubled year-over-year as new Ryzen 8040 notebook designs from Acer, Asus, HP, Lenovo and others ramped

She also said the market is on-track to return to annual growth in 2024 driven by the start of an enterprise refresh cycle and AI PC adoption.

“We see AI as the biggest inflection point in PCs since the internet, with the ability to deliver unprecedented productivity and useability gains,” Su said.

We will also take the next major step in our AI PC roadmap later this year with the launch of our next generation Ryzen mobile processors codenamed Strix. Customer interest in Strix is very high based on the significant performance and energy efficiency uplifts we are delivering.

 

[ChorizoPicozo]

I mean... who's to blame...GenZ and capitalism? or is it just that the economy sucks and from one the demand is not there and the other cant reduce the cost of its console. you decide.

 

[digital_ghost]

The rich: Wahh we are making $5 billion dollars , no matter how much we make it will never be enough.

The poor: I make $7 an hour and I'm struggling to afford food and shelter.

The wealth disparities in the world is sickening. And they could fix it easily.

 

[Mr Moose]

Clickbait.

 

[Elbereth]

Thanks Phil.

 

[AGRacing]

Im in my 40s and would love to spend some money on games. It’s quite clear they stopped making games for me mid PS4 era, though.

Once in a while there is a gem. But we could be doing a lot better. I cant even buy an arcade racer now without pointless narrative horse shit crammed into it. Boring. Eye rolling. Not fun.

Lately I spend time and resources on how to play old games on new hardware.

 

[darrylgorn]

Finally, people are touching grass.

 

[Shifty1897]

Maybe $70 games are too much to ask for and we should be using all this new technology to make games cheaper, not more expensive.

 

[poppabk]

Muted financial results? Revenue up, gross margin up. What a disaster.

 

[ArtHands]

Im in my 40s and would love to spend some money on games. It’s quite clear they stopped making games for me mid PS4 era, though.

Once in a while there is a gem. But we could be doing a lot better. I cant even buy an arcade racer now without pointless narrative horse shit crammed into it. Boring. Eye rolling. Not fun.

Lately I spend time and resources on how to play old games on new hardware.

How do you plan to do that? I have been tinkering with emulation on Retroid Pocket 4 Pro myself

 

[MaestroMike]

AMD *CFO not CEO

 

[Bernardougf]

Im in my 40s and would love to spend some money on games. It’s quite clear they stopped making games for me mid PS4 era, though.

Once in a while there is a gem. But we could be doing a lot better. I cant even buy an arcade racer now without pointless narrative horse shit crammed into it. Boring. Eye rolling. Not fun.

Lately I spend time and resources on how to play old games on new hardware.

This.... soooooo much this.
New audience dosent give a shit about video games (only mobile) and (outside japan) they stopped making games to appease the supposed biggest targeted player audience ( 20-50 straight males)

Now days I feel like Im always playing as some girl boss who talks to much and has questionable beauty standards. I remember a sony or e3 direct some years ago when I counted 8 of 10 games with female leads ...something like stellar blade is awsome but more and more western games feels like they arent made for me ... they are for some audience that dosent seems to exist

Edit: and freacking open world bloated snoozefest ... this plague just ruin perfect good games/franchises .. looking at you Elden Ring!

 

[Puscifer]

Im in my 40s and would love to spend some money on games. It’s quite clear they stopped making games for me mid PS4 era, though.

Once in a while there is a gem. But we could be doing a lot better. I cant even buy an arcade racer now without pointless narrative horse shit crammed into it. Boring. Eye rolling. Not fun.

Lately I spend time and resources on how to play old games on new hardware.

You and me both. I said recently in another thread that my steam deck and retro handhelds are my primary systems. Something about Ragnarok really sealed the deal with me, that and I couldn't really enjoy Spiderman 2 cause I had more fun watching my boyfriend at the time play it than actually experiencing it.

Returnal is fantastic, though, about 150 hours between PC and Console my favorite game they've published this entire generation yet I feel like it was a swan song to gameplay first titles in that same way.

 

[feynoob]

Games these days are boring as hell.
Cinematic, too much exposition, too much handheld progression, too much saves, and too much useless quests.

I miss the days when the game lets me get lost without any direction. Too much cookie cutter these days with overpriced tag.

 

[vaibhavpisal]

I would like to see how consoles sell without any hype / marketing.

How much people are interested in buying them just like, say an iPhone.

Just go out and buy it cause you need that thing.

 

[feynoob]

I would like to see how consoles sell without any hype / marketing.

How much people are interested in buying them just like, say an iPhone.

Just go out and buy it cause you need that thing.

It will sell alot. The problem is the new generation grow up with iPads. They don't give a crap about consoles.

Plus, these days everything is online. There is no going outside and look for stuff. That impacts alot of stores and what they can sell, since customers are ordering their stuff online.

 

[StereoVsn]

It will sell alot. The problem is the new generation grow up with iPads. They don't give a crap about consoles.

Plus, these days everything is online. There is no going outside and look for stuff. That impacts alot of stores and what they can sell, since customers are ordering their stuff online.

Yeah, I have been trying to get my kids to play normal games va iPad mobile stuff and it’s a chore sometimes.

 

[vaibhavpisal]

It will sell alot. The problem is the new generation grow up with iPads. They don't give a crap about consoles.

PS + Xbox is still on track to sell 160 million combined. Buyers are there.

Just that, if console manufacturers cut crap expenses like marketing, how far will they go?? Am assuming it will be less than 160 million but by how much??

 

[feynoob]

PS + Xbox is still on track to sell 160 million combined. Buyers are there.

Just that, if console manufacturers cut crap expenses like marketing, how far will they go?? Am assuming it will be less than 160 million but by how much??

It means nothing if people aren't spending money buying the games that much.

The 3 platform crowd inflates that stats in the process.

Marketing is vital right now. The attention span is very small currently and people can't see your ads due to less time on TV and walking outside. You have to be aggressive with marketing, something Xbox is severely lacking right now, which explains why no one is buying their system that much.

 

[hlm666]

AMD gained market share in gpu segment according to the last reports on that and nintendo don't use AMD so what the hell is going on with the semi custom segment? was last year abnormally high and now this year returning to normal has blown it out to that 48% decrease? Did they get this much slowdown last gen in the 4th year?

I wonder if that stuff we saw from microsoft looking at arm was more a plan b if AMD want more profit from the consoles in the future or if the radeon group pull away from the graphics cutting edge and focus more on mobile/low power gpus?

 

[Imtjnotu]

playstations take on this

 

[Klosshufvud]

The prices have entered clown territory. PS5 and SX are both more expensive now than at launch. PS4 could be bought for 299 by now. Adoption is therefore naturally slower. So they turn to increase profits per user. But there comes a point where the users can't tolerate more monetization. Paying for an expensive console and then an expensive sub and $70 for a game to get you the same thing you got a decade ago for less than half the price is just insanity. Software side, Sony/MS first party have been a disaster this gen too.

 

[Three]

playstations take on this

They've probably declined this year too though but likely by less. They had a record quarter in February but forcast a decline in hardware.

 

[peish]

It is my anecdotal, i am late part of the baby boomer https://www.neogaf.com/threads/as-b...force-what-will-happen-to-videogames.1670041/

and i mix with gen-z or younger in my work. Console gaming talk have dropped like rocks. There was a spike during covid period, but today it is rockest of bottomest. There is no interests for spending hours on the sofa before covid hits, and much less after the covid period

There was a helldiver and palworld short up trend. But i think console gaming is entering its dark ages. It is too expensive and too much committment to young people

 

[DenchDeckard]

There's so many reasons for the decline and it's going to continue as no one is creating anything to be hyped about.

My thoughts on why console gaming is declining.

- massive overly padded games that are all based around ubisoft open world. Even exclusives from platform holders have followed this awful design.

- go woke go broke?

- cost of hardware.

- poor delivery on quality titles from Microsoft.

- Sony being far too quiet this gen on anything.

- this above and other reasons. Kids/ teens don't give a shit about consoles.

- studios not aiming games at the right demographic.

This has all lead to abundance of stock piling up at retail and purchases on new stock being cut back.

 

[Panajev2001a]

There's so many reasons for the decline and it's going to continue as no one is creating anything to be hyped about.

My thoughts on why console gaming is declining.

- massive overly padded games that are all based around ubisoft open world. Even exclusives from platform holders have followed this awful design.

- go woke go broke?

- cost of hardware.

- poor delivery on quality titles from Microsoft.

- Sony being far too quiet this gen on anything.

- this above and other reasons. Kids/ teens don't give a shit about consoles.

- studios not aiming games at the right demographic.

This has all lead to abundance of stock piling up at retail and purchases on new stock being cut back.

Last year was still post COVID shipment boom.

This year lower performance for AMD might very well be mostly of not all due to lower XSX|S sales.

 

[midnightAI]

- Sony being far too quiet this gen on anything.

I have a feeling that's about to change

 

[Fess]

I’ve had the AMD stock on and off over many years, for some reason they always drop whenever I have them… Like now. Then they go up when I sell…

 

[Hudo]

Certainly doesn't help that both the Xbox and the PS5 are overpriced, "AAA" game quality has been declining while publishers trying to extort even more money out of their consumers with secondary and tertiary revenue streams.

 

[ShaiKhulud1989]

We have one limping AMD console client with big ‘full RDNA 2’ APU in two SKUs. This vendor showed -60% q1 hardware sales in two years. It has nothing to do with the nagging above.

 

[Bernardougf]

There's so many reasons for the decline and it's going to continue as no one is creating anything to be hyped about.

My thoughts on why console gaming is declining.

- massive overly padded games that are all based around ubisoft open world. Even exclusives from platform holders have followed this awful design.

- go woke go broke?

- cost of hardware.

- poor delivery on quality titles from Microsoft.

- Sony being far too quiet this gen on anything.

- this above and other reasons. Kids/ teens don't give a shit about consoles.

- studios not aiming games at the right demographic.

This has all lead to abundance of stock piling up at retail and purchases on new stock being cut back.

Exactly this. Ms shitted the bed and sony if it was not for 2nd party from Korea/JP is doing fucking nothing with their western studios... aside from very (few) questionable even if somewhat successful Sequels.

 

[DenchDeckard]

We have one limping AMD console client with big ‘full RDNA 2’ APU in two SKUs. This vendor showed -60% q1 hardware sales in two years. It has nothing to do with the nagging above.

Honestly, If Microsoft had done an amazing Job this gen I really don't think you would have seen a drastic boost in sales of that platform as well as Sony doing well. You would have just seen more of a split in current numbers where more people chose an Xbox over a PS5. Overall, the numbers would have been similar with maybe 10 points better off in total for cross over, but nothing drastic.

 

[Darsxx82]

When around 4 years of this gen , casuals player, children and young people (who show less and less interest in consoles) can play the most popular games on consoles of the last generation...... It is clear that it will be more difficult attract new users.

Adds that playing on PC and Steam is better than ever, the consoles are more expensive than when they were launched, the console exclusives games are more expensive and are released in smaller quantities, and the errors or lack of interest of the platforms holders at the time to sell their consoles....

 

[TheKratos]

Both NVDA and AMD are shifting away from gaming and focusing on datacenters due to AI revolution. Nothing new. What this means for us gamers remains to be seen.

 

[Mithos]

Like someone already alluded too. PRICE...
The PS5 and Xbox Series X consoles are not prices at "average Jane and Joe" impulse buying prices yet.
In fact in many places the price is HIGHER then when they were released.

 

[Hero of Spielberg]

Like someone already alluded too. PRICE...
The PS5 and Xbox Series X consoles are not prices at "average Jane and Joe" impulse buying prices yet.
In fact in many places the price is HIGHER then when they were released.

It’s crazy that Series X still retails $800 here in Australia. PS4 was $450 on launch

 

[magnumpy]

Like someone already alluded too. PRICE...
The PS5 and Xbox Series X consoles are not prices at "average Jane and Joe" impulse buying prices yet.
In fact in many places the price is HIGHER then when they were released.

seriously. why hasn't there been a price drop for next gen systems yet? that would increase sales...

 

[mrBarrelNut]

It's the economy, stupid!

People are struggling to pay their bills and groceries, the entertainment is a second priority.

 

[Ozriel]

Certainly doesn't help that both the Xbox and the PS5 are overpriced, "AAA" game quality has been declining while publishers trying to extort even more money out of their consumers with secondary and tertiary revenue streams.

Pricing is fair for the specs, tbh.

We have one limping AMD console client with big ‘full RDNA 2’ APU in two SKUs. This vendor showed -60% q1 hardware sales in two years. It has nothing to do with the nagging above.

Last year was still post COVID shipment boom.

This year lower performance for AMD might very well be mostly of not all due to lower XSX|S sales.

Quite the cope indeed

Lower performance for one is offset by better performance of the other. Console buyers who aren’t buying Xbox are picking up a PlayStation. Overall, it’s one market for AMD and it’s declining.

Multiple reasons for an overall decline. Price, economic downturn, move to PC etc.

 

[Buggy Loop]

Nvidia‘a previous quarter had gaming « flatline » from quarter to quarter (previous -50% and then +50%) but +56% over year. Full year revenue rose 15% to $10.4 Billion

Still hard from their financial side to even know if their GPUs are off to be used for gaming, crypto or AI, but that’s also the case I guess for dedicated GPUs from AMD. Nintendo switch sales and GeForce now directly affect gaming for them.

Maybe the next quarter update they’ll tank top who knows.

As P Panajev2001a said previously though, there’s a huge winding down from the covid era and it’s felt throughout the industries. I’m not surprised. Worldwide inflation is killing the middle class. Media has its head in the sand and it all looks as if everything is normal. Many countries are flat out bankrupt but still print money like no tomorrow. It’s all artificially stayed alive when internally they’re fucked.

Probably with a sprinkle of a decline in consoles and Xbox gamers going PC.

The implosion of hype from Starfield probably still has gravity waves travel through each quarters and reverberate all the way to andromeda galaxy. When you’re expected to be THE game that defines almost a gen and you fumble, it has huge impacts.

 

[willothedog]

seriously. why hasn't there been a price drop for next gen systems yet? that would increase sales...

For the PS5 Totoki said the APU die cannot be shrunk to save costs like the PS4 which I assume is the most expensive component.

 

[Fabieter]

Its what happens when you stop doing exclusives. It only gonna get worse from here on out for xbox and PlayStation.

 

[Fabieter]

It's the economy, stupid!

People are struggling to pay their bills and groceries, the entertainment is a second priority.

Is that the case when nvidia gaming part is still through the roof and amd ryzen cpua as well. So yea people probably leaving consoles in droves.

 

[Physiognomonics]

There's so many reasons for the decline and it's going to continue as no one is creating anything to be hyped about.

My thoughts on why console gaming is declining.

- massive overly padded games that are all based around ubisoft open world. Even exclusives from platform holders have followed this awful design.

- go woke go broke?

- cost of hardware.

- poor delivery on quality titles from Microsoft.

- Sony being far too quiet this gen on anything.

- this above and other reasons. Kids/ teens don't give a shit about consoles.

- studios not aiming games at the right demographic.

This has all lead to abundance of stock piling up at retail and purchases on new stock being cut back.

Also game money from customers is not properly redistributed to the developers / creators, at least in the West. Steam, Sony and Microsoft are making billions, sure, but is this money ending in the hands of creators? Hell no. The Western videogame industry model is doomed to fail, and it is failing as we speak.

 

[Mithos]

It’s crazy that Series X still retails $800 here in Australia. PS4 was $450 on launch

seriously. why hasn't there been a price drop for next gen systems yet? that would increase sales...

For the PS5 Totoki said the APU die cannot be shrunk to save costs like the PS4 which I assume is the most expensive component.

Prices in Sweden where citizen Jane's and Joe's would buy an Xbox Series X or a Playstation 5, prices are about us$100-150 more then on releaseday. ¯\_(ツ)_/¯

 

[MikeM]

Cost of living drastically outpaces salary. Obvious where gaming falls in the list of living priorities.

 

[onnextflix5]

It will sell alot. The problem is the new generation grow up with iPads. They don't give a crap about consoles.

Plus, these days everything is online. There is no going outside and look for stuff. That impacts alot of stores and what they can sell, since customers are ordering their stuff online.

Or maybe the don’t have £500 for a console with barely any new games.

 

[SHA]

The only advantage remains on consoles are day one releases adding that most of us are under middle aged casuals and the worst of it yet is that we are not replaceable on the console spectrum unfortunately, the future doesn't look bright for consoles.

 

[Punished Miku]

feynoob welcome back man, hope all is well.

 

[Ozriel]

The implosion of hype from Starfield probably still has gravity waves travel through each quarters and reverberate all the way to andromeda galaxy. When you’re expected to be THE game that defines almost a gen and you fumble, it has huge impacts.

The game that was supposed to sell the most on PC is responsible for the decline in console hardware sales?