Submitted by -Mezzo- 739d ago | article

Nvidia and AMD Place Bets On Next-Gen Gaming

GameSpot - Two of tech's biggest competitors are taking a very different approach to the next generation of gaming with Sony and Android, but which is making the right moves? (AMD, NVIDIA, PS4, Xbox One)

T900  +   739d ago
Well AMD is going to sell to consoles, then there wont be any innovation later, it will be the same tech rolled on for the next 6 years.

Nvidia will constantly need to pump out a new GPU for the Androids every year.

From a chip makers point of view its healthy to be releasing new chips as they can make huge margins on new tech. Rolling the same tech for 6 years means no innovation and piddly profits.

Hence from a profitability point of view Android is def a better market at the moment.

Specially with console volumes being quite low compared to Androids not to mention console makers pay pennies for hardware.
#1 (Edited 739d ago ) | Agree(11) | Disagree(20) | Report | Reply
JsonHenry  +   739d ago
Exactly. But at this point AMD is in such dire financial straights they need to take whatever cash flow they can get. Even if it isn't ideal.
Granpire  +   739d ago
That doesn't mean that AMD will just curl up and die. They will still maintain some sort of competition with Nvidia's PC cards.

And your logic is flawed as well. Rolling out the same tech for 6 years means minimizing production costs and maximizing profits long-term. It's more expensive to stay on the bleeding edge. Not that AMD won't do that(or try), but I'm just pointing out the obvious.
CommonSenseGamer  +   739d ago
That's true about minimising costs however, Sony will want to do the same with the PS4 over the course of its life so those profits for AMD won't necessarily increase just because AMD can cut their costs. Sony may expect those savings to be passed onto them...just like us consumers like them to be passed onto us.
Reborn  +   739d ago

AMD has made a good bet. Thats why Nvidia is a bit frustrated (they've missed out on possibly some heavy business). Business is business. Sony and MS systems (if rumours are true) will sell. Yes, of course Andriods will sell at a much faster rate, but they'll make a good chunk if both systems are running AMD.

Whats stopping AMD from innovating exactly? Them assisting Sonys system doesn't hold innovation back. Unless they went exclusive console work only? If it works, this is a big chance for AMD to get involved properly, and see how they can really impact the market.

Piddly profits? I doubt it.
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papashango  +   739d ago
Lol Nvidia's frustrated? god you kids kill me.

The mobile market is much healthier market than the console market.

Somebody asked them about their console decision and for the next week every gaming site that wrote an article about it was being put up on n4g.
Fishy Fingers  +   739d ago
Hmm... T900 I've read your comment 8 times and still can't see "Nvidia are just butthurt" anywhere. This is N4G isn't it?
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Christopher  +   739d ago
Well, you are mostly correct as far as their direction, but I think you're wrong in two things.

1. Phone internals are cheaper hardware than console internals.

2. Both are going to be focusing more on non-PC internals with this, even moreso with NVidia who will keep producing new internals for phones every year.

But, otherwise, AMD is stagnating if they don't make enough profit from these to continue development of new PC internals or get some new customers like Sony to help elevate their profits.
Pandamobile  +   739d ago
AMD benefits way more from making chips for other companies than Nvidia does. If I'm not mistaken, AMD actually makes their own chips. Nvidia uses TSMC.
T900  +   739d ago

from what i recall AMD sold their FABS i could be wrong.

They sold the Fabs because they were not competitve with Intel anyways.
papashango  +   739d ago

I believe you may be right. I remember reading this news a few years ago.
DeadlyFire  +   738d ago

AMD built Global Foundries.
AMD separated itself from GF.
Now both companies are working together very closely. So AMD still goes to them.

Funny thing is Global Foundries newest fab is in Malta, New York. Starting production in 2013. Console plant? :P

AMD is not losing money on this deal. If anything its profit for them for the next 10 years. Which can help them offset anything else that goes wrong. As well as fund them for awhile longer. AMD needs to make a blistering fast CPU to compare to Intel in the next 5 years or else.

NVIDIA is also trying to do this, but with ARM tech. Its a new direction for ARM CPUs. NVIDIA wants a full fledged desktop processor to compare to Intel and AMD with ARM. So NVIDIA and AMD are in the same boat really.

NVIDIA thinks their way could be better, but they are neck and neck with AMD considering specs. AMD has a card with 4.3 Tflops and NVIDIA's newest one hits 4.5. AMD's next GPU will hit something similar.
TopDudeMan  +   739d ago
Yeah, people buy new phones yearly.
Mobile phone sales trump console sales all the time, unfortunately.
CommonSenseGamer  +   739d ago
That's a great thing as look at the tech they are packing into mobiles a d tablets now. Honestly, I am looking forward to the day I can take my tablet, dock it next to my TV so its running off full power, pick up a Bluetooth controller and get some hardcore gaming in.

I would rather be able to take my expensive toy with me than leave it sitting at home all day. Tablet on the go, console when at home. I love this idea and although its possible today, I'm guessing its another 3 to 4 years away before it really catches on.
green  +   739d ago
I don't know why you are getting disagrees T900 because you are right.
kevnb  +   739d ago
constantly changing hardware is much more exciting for me.
GraveLord  +   739d ago
Let's look at current-gen console sales.
Wii = 100 million
PS3 = 77 million
Xbox 360 = 77 million

So over 250 million consoles sold! Now lets look at next-gen consoles are how AMD provides not only the CPUs, but the GPUs in all 3. AMD IS MAKING BANK NEXT-GEN.
DeadlyFire  +   738d ago
This is a plus for AMD as their main focus has shifted to mid-range/low-end systems.

AMD gets a consistent profit for the next 10 years from Sony, Nintendo, and Microsoft on top of any new GPU and CPU tech they build.

AMD's APU in the PS4 pumps out 1.84 Tflops. Intel has Haswell CPU that pushes 1 Tflop coming up soon. AMD plans to sell a modified version of the PS4 APU to the PC market. Likely with heavier CPU cores and closer or higher than 1 Tflop output.

This money will help AMD turn itself around and reintroduce high end products to compete with Intel.

AMD has plans for ARM/x86 co processors for Servers and so on in 2014.
"From a chip makers point of view its healthy to be releasing new chips as they can make huge margins on new tech. Rolling the same tech for 6 years means no innovation and piddly profits. "


Amd was sonys second choice.

worst cpu maker making the best console! nice..

"AMD Reports 2012 Loss of $1.18 Billion, While IBM Profits"

Amd and sony can feel each others pain. Sony trying to be #1 again and amd trying to be #2 again.

Nvidia and intel are just ballers right now.
When you turn down a chance to be in a console you know you doing big things.

"PS3 and its RSX graphics. Two years ago, in January 2011, Nvidia CEO Jen-Hsun Huang told reporters that the Sony-Nvidia deal had earned Nvidia $500M in royalties since 2004. The total number of shipped PS3 consoles by March, 2011 stood at 50 million according to data from the NPD group. Half a billion is nothing to sneeze at"

And why do sony gamers say Nvidia is butthurt that they turn sony down. O_o
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N0S3LFESTEEM  +   739d ago
If AMD leaves the market Intel and Nvidia would pretty much dictate all prices and tech advancement which knowing those companies they would throttle it to their advantage. I wouldn't be all that hateful to AMD... their the only ones keeping prices down and their managing to keep up in the GPU market rather well. On the CPU side they could use a little help but their 8-core offerings aren't that bad... they can keep up which is good.
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duplissi  +   739d ago
aside from the beastly titan the 79XX radeons from amd rule the roost at the moment when it comes to power. the 7950 is more powerfull than the gtx 670 in most games and likewise the 7970 is more powerful than the gtx 680 in most games. Amd has really stepped it up in the gpu market, especially after the 12.11 catalyst drivers. and with piledriver and soon steamroller it looks like they are starting to turn around their cpu business, although they still dont compare to intel's highend cpus like the 3920x (3 times the price of the 8350 piledriver which mostly competes with the 3770k)

heres hoping, because we are screwed if they leave the market.
clintagious650  +   739d ago
I wouldnt say they need that extra money but any extra money is more profit. I think any company looking to make extra cash would be a little unhappy. U make it sound like a half of a billion dollars is nothing.
kikoano  +   739d ago
the consoles are last hope for amd and they will fail
delboy  +   739d ago
AMD&Sony are big in red numbers, so it could be the final nail in the coffin for both of them, if the ps4 has a similar slow start like ps3 had.
And it just feels right that two lossers working together.
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neogeo  +   739d ago
360 uses a ATI Gpu and it's better then PS3's Nvida. I own a A6 APU laptop and it's not even close to the power of PS4 yet still runs all games much better then PS3/360.

I just dumped my lifes savings into AMD and in 1 day made $36. What now? It fricking $2 per share! Let's not forget that WiiU is also got AMD inside and after some big hitters It will pick up sales.
Let's think about it. Nintendo, Sony, MS are ALL going AMD this time. Also AMD is always making kick ass APU's and they will only get better. I never been so happy with a latop as my Asus APU
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kikoano  +   739d ago
Nvidia is goig where valve goes to open system
Wotbot  +   739d ago
With AMD you get more for your money and I prefer their business partner attitude, a much more friendly supplier to work with as a whole.

Having a stable chip design which they can cost effetely manufacture and cost reduce over 6-7 years must be attractive, there's no continuous yield issues that new chip design and manufacturing incurs.

The console sector looks like a good business model for AMD, I am sure Nvidia would like to have it.
josephayal  +   739d ago
Nothing can beat AMD
ATi_Elite  +   739d ago
Nothing can beat AMD.....Except the 6 Intels above AMD in every Benchmark test.

TechnicianTed  +   739d ago
I've purchased cards from both companies over the years, and they both have had great cards that have been worth the money. And I've bought AMD's processors in the past when it's been the logical choice.

At the moment nvidia are in a much more comfortable position, they are profitable and have a good stranglehold on the desktop area and also have their fingers in other pies.

AMD on the other hand are struggling and will take any opportunity to stay afloat. They've had a beating over the last few years in both the graphics card and processor markets, but they continue to make affordable equivalents to their counterparts.

It will be interesting to see how they both fair over the next few years.
#7 (Edited 739d ago ) | Agree(2) | Disagree(0) | Report | Reply
travelguy2k  +   739d ago
Constant innovation doesn't come cheap. Rolling out the same product for 6 years is how console makers turn a profit in the first place. There is little to no r&d once a console is released, only in making hte chips smaller, more efficient and cheaper.
dcbronco  +   739d ago
The author seems to completely ignore the coming AMD chips. They should be more capable than anything ARM or Intel has in the tablet market. Once Temash releases AMD should start taking a large share of the tablet market and by this time next year should be the best selling tablet chip. While some people are satisfied running basic programs on tablets, Temash allows full Windows 8 and 1080p gaming while still having a good battery life. All AMD needs is a little more time. If they make through this Summer, they will be well on their way back.
ATi_Elite  +   739d ago
Nvidia can careless about consoles as they got Tegra which is pushing for towards Desktops use.

also Nvidia has a lot going on and even though console would of been easy money it still takes away resources from Nvidia's long term goals

AMD needed and is the BEST choice for Consoles with it's APU's end of story.

Also AMD has some nice tablet APU's coming out that should give Intel and Nvidia a run for their money and AMD also is still solid on the Server End.

AMD's HD7970 GHZ is the fastest card. No one is gonna give Nvidia credit for making a $1000 card just to get the crown as AMD could do the same and HD7970ghz Crossfire beats the Crap outta a Titan and is $350 Cheaper than a Titan!

S2Killinit  +   738d ago
actually, IMO AMD is in a really good place having secured the next gen consoles. They still have the opportunity to secure deals with hand helds should they believe it is in their interest so I don't think that they are really taking a different "approach" so much as they have actually won over nvidia in the next gen console front.

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