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Submitted by iGAM3R-VIII 1037d ago | news

AMD Targets Game Consoles To Soften Blow From PC Weakness

If buzz on the web is to be believed, then Microsoft (MSFT) will use an AMD (AMD) processor, which combines the Jaguar CPU with a graphic chip, to power its next generation Xbox game console. Though the news has yet to be confirmed by either of the two companies, these rumors led to a near 15% rise in AMD’s stock price, which has lost more than 60% of its value during the last year. (AMD, PC, PS4, Xbox One)

aviator189  +   1037d ago
If the new consoles (720 and ps4) really do end up selling very well, I can definitely see amd benefiting immensely, especially when nvidia isn't involved.

Seeing as how microsoft's pc business is also on the line with the surgence of tablets and smartphones, they probably want to take the next xbox as seriously as they can. I'm really hoping they hit the ground running with their next xbox (along with the ps4). In the end, gamers are the winners, imo.
decrypt  +   1037d ago
AMD wont benefit much, reason being they wont be making much from console sales. Consider how cheaply the consoles are being sold, Mid range GPUs sell for about 300usd thats almost the price of a console. Hence no AMD isnt making much on console sale.

Rather as time goes on since new tech wont be required for console AMD will not be able to charge higher for a newer chip. Rather console makers will be squeezing them for lesser prices.

As a matter of fact the slow down on the PC market is caused by consoles. This is because consoles act as the lowest denominator. Since console tech doesnt improve for years(cycles have gotten longer now). Games are made for 7 year old hardware.

Since games are made for such old hardware even PC gamers no longer need to upgrade as often. Hence the blow is felt by AMD and Nvidia, not only in the GPU business but also in the CPU, MB and RAM.

Now console gamers may disagree with this, however evidence is in the pudding, never before in history was it possible to play games near max settings on 6 year old hardware. 8800GTX is a testament to the slowdown in the industry, Even today this 6 year old GPU is still capable of playing BF3 in 1080p. This was impossible before the current gen. Reason being games used to graphically advance due to no consoles holding PC back.

Hence in the end this ends up hurting Nvidia and AMD too. Previously a PC gamer would be upgrading every 2 years, that is not the case any more. They dont need to upgrade just like console gamers dont need to upgrade. Console gamers once they buy a console, they keep playing on the same tech for all gen long. That means AMD cant sell to them again. Not as long as their console is still working.

Hence essentially what has happened is, they slowed the market down with consoles, causing their PC base to stop upgrading. Now instead of getting business from PC gamers every 2 years, they see the same business every 5 years and all of us know console business doesnt repeat for 7 years.

Now some may argue they will sell alot of chips on console, well not really. even if you combine all the console makers you are talking about 30 million chips a year which isnt a huge deal for a company like AMD considering they just slowed down all of their PC business meaning not just the GPUs ie CPU, MB, RAM etc.

Conclusion by supporting consoles, they have literally axed their own feet.
Zcarnut  +   1037d ago
Assuming your theory is true, wouldnt it also mean that the PC upgrade market may rebound once the next consoles arrive?...And may remain that way at least 2-3 years into the consoles lifespans?
I think theres another thing to consider you didnt touch base on. The economy. I believe if it didnt go into the dumper, we would have had PS4's and 720's for some time by now. Which would mean the PC market would have moved forward as well.
zebramocha  +   1037d ago
@decryt Really?consoles act as the lowest common denominator to PCs and not the myriads of components that could be put in a pc,how do you no and isn't making money on console?going by a post on neogaf Sony and Ms has to put money up on the design for their custom APUs and that doesn't account royalties they pay to amd.
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hellvaguy  +   1037d ago
"AMD wont benefit much, reason being they wont be making much from console sales"

How do you personally know this? DO you have insider info or just making up total and complete b.s.? I'm going with the latter, since none of what the profits are were made public. Also, I do recall MS and Sony stating that their consoles are sold at a loss for the first few years, meaning they subsidize them. Duh they goes your cheap console price theory.

Presenting you make believe theory as fact, with no facts at all, just makes you sound stupid.
Dojan123  +   1037d ago
Good points. However, with PS4 moving to a PC based architecture, it will allow developers to build games with less non-PC considerations which holds PC back. This should push the pc gamer getting better / more powerful options that could bring back the every 2 year need/want to upgrade.
shutUpAndTakeMyMoney  +   1037d ago
yeah console gamers think amd will make billions form ps4. But they probably won't. Nvidia made 500M in 7 years from ps3. But they made 1.2 billion already this year.
koehler83  +   1037d ago
I expect AMD will be making a negligible return on console hardware.

I do think they'll benefit by being the defacto standard to which games are made, having a huge impact for them in their PC market.

We've been seeing a lot more studios put more focus on AMD chipsets lately, likely due to heavy investment from AMD themselves. We're about to see every studio put more focus on AMD chipsets.
Longsama  +   1036d ago
If the game developers who make the games that recquire you to upgrade your system didn't have their console sales to support them they'd probably go out of business because the pc market represents such a small percentile of their revenue.
hesido  +   1036d ago
"Even today this 6 year old GPU is still capable of playing BF3 in 1080p."

I don't necessarily think this is a bad thing for the consumer. We are past the point of 8bit 2d graphics. Game developers can already convey all sorts of nuances through graphics. Photo-realism can wait, and we get to keep our dollars in our pockets.

Having to upgrade your gfx card every few years may be exciting for some, but I don't think everybody needs that bleeding edge technology.

With consoles, the technological jumps are in bigger steps (>10x more power every gen), with PC, the jumps are in smaller but much more frequent steps (~2x every generation but every few years) so it somehow balances out.

Meanwhile the longer a fixed hardware is used, the better it is utilized, while a bleeding edge PC hardware can only be utilized to some degree due to developers having to cater to bottlenecks of different kinds of hardware.
#1.1.8 (Edited 1036d ago ) | Agree(0) | Disagree(0) | Report
DeadlyFire  +   1036d ago
AMD will be making a large sum of cash. Why?

1. Stock. All good signs of business going well and with multiple big partners = pluses to the size of that stock. Now three consoles are tied to that stock.

2. NVIDIA didn't make much money with its perioud of making a GPU alone for the ONE console. AMD is making a GPU for 3 as well as a CPU/APU combo for two of the three!!! So its profit is triple + CPU sales.

Each individual sell doesn't effect AMD much. Its Sony, Microsoft, and Nintendo buying the parts that they earn the most cash from.

Sure console ports slow down PC gamers upgrading, but it expands the exposure of PC games to more computers and more players as well which leads to more PC gamers. You are only looking at half the picture. At least this new generation is pushing close to 2 Tflops. PS3/X360 in comparison use about 350-400 Gigaflops or so in their GPUs.
#1.1.9 (Edited 1036d ago ) | Agree(2) | Disagree(1) | Report
dcbronco  +   1036d ago
Decrypt I think you're underestimating market ups. Retail prices and wholesale prices are very different. AMD has to make a profit, the parts manufacturer has to make a profit. With the consoles they are basically a hired gun. Consultants. They are also licensing their tech. Sony and MS then have to take the designs out and get them made themselves.
Arai  +   1037d ago
Several large PC manufacturers (Dell, HP, etc etc) have voiced themselves that the PC market has shrunken....which was brought up at investor meetings.

I don't know who targeted who, in the end I think it was a wise decision for the console makers to go with AMD.
Price/performance ratio of their GPU's is great, especially their 7000 series.
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Roccetarius  +   1037d ago
I don't know about AMD's GPU's anymore. Both the 6970 and 7970 failed for me. I know hardware isn't perfect, but i expect at least 2 - 3 years time before it bites the dust.

I just decided to say fuck it, then i looked for a Nvidia GPU. I've never had problems with them before, but their recent hardware leaves me in doubt.
#2.1 (Edited 1037d ago ) | Agree(1) | Disagree(4) | Report | Reply
Longsama  +   1037d ago
This just seems like good business to me, I mean if i could have my product in every major gaming device on the market I feel pretty damn accomplished...I just don't see how anyone could look at that as a negative
Agent_hitman  +   1037d ago
Good business decision for AMD.. too bad for Nvidia and Intel, since majority of techie people are buying ARM based tablets and smartphones.. I heard that PC sales are poor lately..
DeadlyFire  +   1036d ago
PC sales shouldn't be poor really. Most people rely on a PC as a primary or 2ndary device regardless of console choice. Being a gamer on the PC takes education. Most general consumers simply lack the effort or knowledge to reach out to it. The future is bright with APUs coming around the corner though.

Even budget retail boxes with a good APU in it should offer 1 Tflop GPU power on the CPU. Which will help PC gaming in a big way. Intel Haswell has 1 Tflop GPU power and AMD's new APU in the PS4 push 1.8 Tflops. In another year or two we could see heavy PC cores + GPU power exceeding PS4 in an APU. When this happens it will shift PC sales forward. As any retailer can sell a gaming PC. No longer will people need an education on hardware or the need to buy a graphics card just to play. Even so that doesn't mean cards will stop coming. They still sell quite a bit of them.
pissed999  +   1036d ago
nvidia was right about ps4. Not worth effort.
FantasyStar  +   1036d ago
I'm just glad to see AMD is pulling themselves together cause no matter where anyone stands: everyone loses if Intel-Nvidia hold a monopoly. Competition benefits everyone, so don't forget that the next time you're gloating about your 3970X or your Titan.
ijust2good  +   1036d ago
The next 5 years is gonna be tuff for PC world. I have a pretty descent PC but i see myself using my Tablet and smartphone hell of allot more and i used to use the hell out of my PC.

Soon we gonna see PC like TV. There may come a time when Desktop PC is are gone from allot of peoples houses for good.

PC gamers are a dying breed and get used to it.
steve30x  +   1036d ago
I've never had any good experience with PC world. The employees didnt have a clue what the components were and they were trying to force a prebuilt computer on me. One employee tried to tell me that the CPU was the whole computer until I explained to her what the CPU really was.
steve30x  +   1035d ago
LOMAO This site makes me laugh. There was no reason to disagree with my post. It wsa my experience with PC workd. Also those guys are overpriced. You will get your parts much cheaper online.
steve30x  +   1036d ago
AMD are only weak on PC because they cant keep up with Intel and Nvidia. AMD and ATI used to be my hardware of choice until they couldnt compete with Intel and Nvidia anymore. If they turn around and start competeing with them then I will go back to AMD.
kwyjibo  +   1036d ago
AMD graphics are competitive, their CPUs aren't.

PC sales are down significantly this quarter, so it's hitting all players. It's why Intel and Nvidia are pushing so hard on mobile.
papashango  +   1036d ago
Amd in the gpu sector are extremely competitive. For anyone in the market for a gtx680. The best choice is a 7970 with an ssd.

Amd in the CPU market...they are taking a thrashing.
DeadlyFire  +   1036d ago
AMD can keep up with NVIDIA just fine.

NVIDIA has a card with 4.5 Tflops. AMD has one with 4.3 Tflops. That is the desktop market. AMD 8000 is coming to match up and surpass NVIDIA's Titan.

Server side.
AMD has a GPU at 5.9 Tflops and NVIDIA has a GPU at 5.4 Tflops.

AMD CPUs on the other hand are not up to par with Intel.

Intel i5/i7 are the high end of the market. While AMD's latest bleeding edge CPU is the mid range end of the market along side i3 Intel CPUs. AMD needs a whole new architecture if you ask me. The one they have had this past few years looks incomplete. Steamroller is a bit of an improvement that should at least put AMD closer to being comparable to Intel i5 CPUs, but still some ways to go to catch up I believe.

Now lets look at APUs
Intel has Haswell coming in 2014 with 1 Tflop GPU power on the CPU.

AMD has APUs coming on X720/PS4 with 1.2/1.8 Tflops of GPU power, but smaller Jaguar CPU cores. Likely they could make a 1 Tflop APU with heavier CPU cores.

NVIDIA has plans for ARM APU in 2014/2015 with a high level of CUDA cores as well to compete.
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landog  +   1036d ago
nvidia and intel are better in every imaginable way than amd

ps4 and nextbox are going to be like a 2 year old gaming laptop

both will get smoked by a 3 year old desktop
steve30x  +   1036d ago
You are only starting the hate posts from console fans again. You didnt need to go there.
imchuckbass  +   1036d ago
Selling cheap 1.6ghz parts to console vendors won't make that much money for AMD, espcially compared to the kind of money that Nvidia makes selling supercomputer parts

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