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{"id":11512,"date":"2022-08-03T14:53:50","date_gmt":"2022-08-03T14:53:50","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/"},"modified":"2022-08-03T14:53:51","modified_gmt":"2022-08-03T14:53:51","slug":"amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/","title":{"rendered":"AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/8\/2\/23289464\/amd-gaming-business-q2-2022-gpu-playstation-xbox-semicustom<\/a>
\n
<\/br><\/code><\/p>\n

\n

Today, we\u2019re learning how big AMD\u2019s gaming business is for the very first time \u2014 and the answer is $5 billion a year. That\u2019s how much the company earned in 2021 from the \u201csemi-custom\u201d chips that go into Sony\u2019s PS5, PS4, and every modern Microsoft Xbox, in addition to its discrete GPUs you\u2019ll find in graphics cards and high-end gaming laptops.<\/p>\n

It appears to have become quite a profitable business, too \u2014 nearly $1 billion in revenue in 2021 \u2014 and could exceed that this year: in an earnings call, CEO Lisa Su says the company typically sees its most money from game consoles in the third quarter, and it\u2019s on track for \u201crecord semi-custom annual revenue in 2022.\u201d <\/p>\n

In 2020, AMD actually lost<\/em> $138 <\/em>million on gaming… but in just one year, operating income rose by over a billion dollars to hit $934 million in 2021. Late 2021 is when Sony started turning a profit on the PlayStation 5<\/a>, though Sony still has supply constraints<\/a>; Microsoft generally doesn\u2019t turn a profit on the Xbox<\/a> itself, though AMD almost certainly would as a chip supplier.<\/p>\n

This quarter, AMD\u2019s gaming revenue is up 32 percent year over year. <\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

<\/source><\/picture>\n

<\/span><\/p>\n

<\/span><\/p>\n

Gaming revenue for 2021: $5.6 billion.<\/em><\/figcaption><\/span><\/p>\n<\/figure>\n

That\u2019s all according to the company\u2019s Q2 2022 earnings<\/a>, as you can see in the slide above. As we mentioned in May,<\/a> this is the first quarter that the company\u2019s broken out gaming into its own financial segment: previously, game console revenue was lumped in with embedded and data center, and GPUs were lumped in with CPUs. <\/p>\n

AMD\u2019s planning to launch its RDNA 3 GPUs later this year; they\u2019ll use 5nm chiplets, and AMD\u2019s promising \u201cmore than 50 percent generational improvement in performance per watt.\u201d While AMD says it is seeing the slowdown in demand for gaming graphics<\/a> now \u2014 PCs in general are slowing down<\/a>, BTW \u2014 it expects that a new launch will improve demand in the fourth quarter. <\/p>\n

Gaming is now AMD\u2019s second-biggest business after its \u201cclient\u201d business (desktop and notebook processors), though its data center business is currently blowing up, too. It\u2019s currently up 83 percent year over year.<\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

<\/source><\/picture>\n

<\/span><\/p>\n

<\/span><\/p>\n

Embedded now includes Xilinx, a company AMD finished acquiring in February.<\/em><\/figcaption><\/span><\/p>\n<\/figure>\n

Here\u2019s how much AMD\u2019s revenue is growing in general.<\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

<\/source><\/picture>\n

<\/span><\/p>\n

<\/span><\/p>\n

Record revenue quarter after quarter, now up to $6.6 billion.<\/em><\/figcaption><\/span><\/p>\n<\/figure>\n<\/div>\n


<\/br><\/code><\/p>\n

Source: https:\/\/www.theverge.com\/2022\/8\/2\/23289464\/amd-gaming-business-q2-2022-gpu-playstation-xbox-semicustom<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: Today, we\u2019re learning how big AMD\u2019s gaming business is for the very first time \u2014 and the answer is $5 billion a year. That\u2019s how much the company earned in 2021 from the \u201csemi-custom\u201d chips that go into Sony\u2019s PS5, PS4, and every modern Microsoft Xbox, in addition to its discrete GPUs you\u2019ll find […]<\/p>\n","protected":false},"author":1,"featured_media":11513,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,8],"tags":[13],"class_list":["post-11512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gaming","category-technology","tag-gaming"],"yoast_head":"\nAMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022 - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022 - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Today, we\u2019re learning how big AMD\u2019s gaming business is for the very first time \u2014 and the answer is $5 billion a year. That\u2019s how much the company earned in 2021 from the \u201csemi-custom\u201d chips that go into Sony\u2019s PS5, PS4, and every modern Microsoft Xbox, in addition to its discrete GPUs you\u2019ll find […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/\" \/>\n<meta property=\"og:site_name\" content=\"Science and Nerds\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-03T14:53:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-03T14:53:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/scienceandnerds.com\/wp-content\/uploads\/2022\/08\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022_62ea8bff47cb6.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/\",\"url\":\"https:\/\/scienceandnerds.com\/2022\/08\/03\/amd-rode-the-ps5-xbox-and-gpus-from-a-loss-in-2020-to-a-likely-billion-in-2022\/\",\"name\":\"AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022 - 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