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AMD CEO 'Thrilled' with How Console Launches Went; 'There's Higher Demand Than We Thought'

AMD CEO Lisa Su said the company is thrilled with how next-gen console launches went. She added that demand is even higher than they thought.

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wccftech.com
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piroh45d ago

And this is only a beginning

44d ago
Ninver44d ago

Where are the damn ps5 consoles

philm8744d ago

In people's houses (Or with scalpers). Great achievement getting out as many as they did considering the way the year went.

RememberThe35744d ago

This is the most successful terrible launch of anything I've ever seen. I don't know anyone who's been able to get a PS5 at retail. I wondered if the scalper thing was over blown but it's so ridiculous. Not even sure I'll be able to get one even this year.

philm8743d ago

It's just the demand is ridiculous, it's not a terrible launch. If they wanted to make more they'd probably have to up the price to cover the cost of more overheads from factory/warehouse space.
I managed to get three in the UK and sold the spare two to my friends at retail price. I just kept an eye on release news and signed up to update emails. Easy.

Vits44d ago

AMD really striked gold with consoles. Considerable easier to provide for, guaranteed sales and they supply for two out the tree platforms out there.

ProjectVulcan44d ago

Margins are low for consoles. No question the revenue helped prop them up 6-7 years ago when pickings were slim for the PC sector and the like but you aren't making going to be able to make huge profits on console hardware.

It's a comfortable revenue stream for them but the big bucks have and always will be in the discrete CPU and GPU industry.

ProjectVulcan44d ago

Well let me put it this way. The entire global console hardware market for every piece of console hardware is about $15Bn a year now, whereas the global x86 server market is at least $60Bn a year.

That's server market by itself.

Not including personal computer OEMs, home consumer markets etc.

Consoles are high volume but low margin sales for AMD. A couple dozen percentage piece of the server market pie would basically bring more profit for them and that's what they really want off Intel.

rlow144d ago

Well of course she is. The console business helped to keep the company alive in it's lean years. Now it's just about riding the gravy train.

RazzerRedux44d ago

AMD's competitiveness in the PC CPU and GPU markets has always been their money maker. Console margins are very low and that is reflected in AMD's profit margins that dipped significantly after 2013. That additional stream of revenue has been good, but it did not keep the company alive.

Notellin44d ago (Edited 44d ago )

Yeah they were really killing it back then with their cpu business hitting less than 10% market share.

The profit margins were low from the failed bulldozer architecture but you wouldn't be able to figure that out.

rlow144d ago (Edited 44d ago )

The begining to the mid lifespan of a console is it's most profitable. Amd semi custom division took in during its 3rd quarter of 2016 $835 million dollars which played a significant part in keeping the company going. It made more than their gpu sales that quarter. Again, mid console span. So to say the console business is just towing the bottom line and didn't strongly contribute to a company that was on the verge of bankruptcy years back. Doesn't give credit were credits due.

https://marketrealist.com/2...

RazzerRedux44d ago

@notellin

It was due to their success launching Zen that has made AMD successful. There is reason AMD's stock was flat all gen and spiked in 2017 and it was not because of consoles.

https://wccftech.com/amd-co...

@rlow1

Yes, as I said, the revenue was good. I'm talking about margins and fact is AMD didn't reverse course due to consoles. It was due to a focus on higher end CPU and GPUs. Stock prices were flat until AMD delivered in the PC market especially in competition against Intel.

"Instead, the company decided to make a big bet on high performance computing architecture, including powerful computer processors and graphics chips for gaming, artificial intelligence, super computing and other "bleeding edge" technologies. AMD was building fast and powerful chips, and often undercutting its competitors on price."

https://www.google.com/amp/...

CDbiggen44d ago

That's great and all, but there's a lot of un-thrilled people who'd like a PS5 out there.

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