Sony Becomes AMD’s Biggest Customer for Increasing PS5 Sales
Sony grew to become AMD’s greatest buyer final 12 months, accounting for 16% of the corporate’s income, boosting its lead in opposition to PlayStation 5 rivals. Sravan KundojjalaExcluding Xilinx outcomes, Sony accounts for 20% of AMD’s income, making it in all probability the corporate’s largest consumer in current historical past, a semiconductor business analyst mentioned.
Certainly, the gaming enterprise unit was AMD’s largest income generator, displaying that Microsoft’s gross sales of systems-on-chip for Xbox Sequence X|S consoles had been additionally robust. AMD bought Sony roughly $3,776 billion price of chips for PlayStation 5 sport consoles in 2022, accounting for 16% of the corporate’s income for the 12 months. filing with the SEC.
sony approved (opens in new tab) Bought over 30 million PlayStation 5 sport consoles at CES. VGChartz (opens in new tab) estimates that the lifetime gross sales of the PS5 so far have exceeded 31.77 million items. In keeping with VGChartz, Microsoft’s Xbox Sequence X|S consoles aren’t as profitable as Sony’s techniques, with LTD shipments of roughly 20.68 million items.
In truth, AMD’s gaming enterprise unit, which sells discrete graphics processors for desktop graphics and laptops and SoCs for sport consoles, posted earnings of $6.805 billion and earnings of $953 million final 12 months, making it the corporate’s most important income. Contemplating that unit gross sales of AMD’s discrete GPUs have fallen in current quarters (based on knowledge from Jon Peddie Analysis), console SoCs accounted for the lion’s share of AMD’s gaming enterprise unit income.
Gaming income fell 7% year-over-year to $1.6 billion [in Q4 2022] AMD’s CEO, Lisa Su, mentioned within the firm’s newest earnings name (through SearchAlpha). “Semi-custom SoC income elevated year-over-year as demand for sport consoles remained robust in the course of the holidays. Gaming graphics income fell year-over-year as we additional lowered desktop GPU downstream channel stock.”
Nonetheless, AMD’s earnings from PlayStation 5 and Xbox Sequence S|X SoCs will possible decline in 2023 and past, as console gross sales usually peak of their third 12 months, and platform house owners are likely to renegotiate element pricing after that. Due to this fact, AMD’s gaming income is predicted to say no in 2023 in comparison with 2022.
“Given the place we’re within the cycle, we count on video games to say no year-over-year,” Su mentioned.
Analysts and traders have been praising AMD’s knowledge heart EPYC processors for being the corporate’s most important revenue driver for practically six years. In 2022, AMD’s knowledge heart unit generated $6.043 billion in income, lagging behind the corporate’s gaming unit ($6.805 billion) and consumer computing group ($6.201 billion). Nonetheless, because of softening demand for the PC and sport console cycle, AMD’s knowledge heart enterprise seems to be set to be the corporate’s most important income in 2023.
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