Technology giant AMD has achieved a major feat in the gaming industry by shipping over 100 million semi-custom processors that power some of the world's most popular gaming devices. This accomplishment was highlighted in AMD's fiscal year 2024 earnings report, covering the quarter ending December 2024.
According to AMD's financial disclosure, the company successfully surpassed the 100-million-unit milestone during the quarter ending in December 2024. These specialized chips drive gaming consoles from industry leaders like Sony's PlayStation, Microsoft's Xbox, and emerging handheld gaming devices such as the Asus ROG Ally and Steam Deck.
However, the celebration is tempered by a significant decline in gaming revenue. The company's gaming segment experienced a substantial 59% year-over-year drop, generating $563 million in the fourth quarter compared to $1.4 billion in the same period in 2023. Despite beating analyst estimates of $498 million, the decline reflects broader market challenges.
AMD's CEO, Dr. Lisa Su, addressed this downturn during a Q&A session. She indicated that while a decrease in gaming revenue is "anticipated," it is expected to be less pronounced compared to other sectors of AMD's business. Dr. Su explained that the previous year involved significant "inventory normalization," and with inventories now stabilized, the gaming segment is projected to experience a milder decline in the first quarter of 2025.
[Note: Inventory normalization refers to adjustments in production levels to align with current demand, often resulting in reduced output to prevent oversupply.]
The broader gaming console market also shows signs of a slowdown. Sony, for instance, has adjusted its PlayStation 5 sales forecasts. In November, Sony executives informed analysts that they anticipate selling 18 million PS5 units during the 2024 fiscal year, which concludes on March 31, 2025. This is a decrease from the 20.8 million units sold in the 2023 fiscal year.
However, in the business world, stability without growth can be perceived as a decline. Dr. Su's forecast of a slight decrease in gaming revenue for the upcoming quarter may indicate a continuing cooling trend in the console market.
Source: LaptopMag
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