Jacob Roach / Digital Trends
AMD has made some of thebest graphics cardsin the last few days , and yet its play GPU market still is likely fairly niche when compare to Nvidia ’s mammoth part . This thought is backed by AMD ’s most recentearnings call , which give away that its gaming tax income is down by a astonishing 48 % yr - over - year .
Things have been looking kind of grim ever since rumors started spreading thatAMD may be give upon the high-pitched - end portion of the GPU grocery store . There have been whisper that AMD may have had aperfectly viable gamy - end graphics cardthat it adjudicate not to launch , rather focusing on the mainstream segment . The earnings call gives some context to these rumors .
Jacob Roach / Digital Trends
As reported byPC Gamer , AMD ’s overall gaming tax income in the first poop of 2024 drop by 48 % liken to the same time period in 2023 , and by 33 % compared to the premature quarter . Jean Hu , AMD ’s CFO , cites a reduction in Radeon GPU sales as one of the rationality why its gambling section is performing so badly . Even though AMD has the upcomingRDNA 4lineup come out this year , it does n’t seem to expect things to get better .
“ class over year , we anticipate our data point snapper and guest segment receipts to be up importantly , get by the strength of our product portfolio ; [ and we expect ] the embedded and gambling segment revenue to decline by a substantial two-fold - digit percent , ” Hu said . “ We actually reckon the 2d one-half will be abject than the first one-half . [ … ] And at the same time , gaming ’s megascopic allowance is lower than our company medium . So overall , it will serve the mixing on the crude margin side . ”
Seeing the diminution in the intensity of AMD ’s gaming business as a good affair make sense — AMD have intercourse full well that the real revenue lies in datacenters and in AI . However , for gamers who prefer AMD , this is n’t undecomposed news program .
We ’ve been on a bite of a tumbler coaster when it comes to the popularity of AMD GPUs . Just two months ago , a story fromJon Peddie Researchshowed that AMD ’s discrete graphics card market was doing well as of the final quarter of last yr . AMD get word a pregnant increase in shipments , with a 17 % rise between the third and fourth after part of 2023 , and a massive 117 % yr - over - class gain from 2022 to 2023 . AMD even managed to wax up to a 19 % market share .
Chances are that we may not see this kind of succeeder when 2024 amount to a close . RDNA 4 , once it comes out — we still do n’t know when , but reports guess the end of the third one-fourth or the start of the fourth — may not make a big enough scratch to save AMD ’s gaming GPU gross for the year . The overall gaming segment may fare better , as AMD is also have a bun in the oven to releaseZen 5processors , so it ’ll have two new product lines out in 2024 .
Despite the drastic growth in loading ( which , let ’s remember , do n’t adequate sales ) , AMD GPUs are n’t that popular among gamers — at least not if theSteam Hardware Surveyis to be believed . While it only accounts for a small for a humble portion of the PC gaming market , it ’s operose to ignore the fact that it ’s almost alone dominate by Nvidia GPUs . In the April 2024 survey , AMD ’s top entry is at No . 16 with its integrated Radeon graphics . The first discrete GPU is the age RX 580 at No . 31 , followed by the RX 6600 and the RX 6700 XT at 37 and 38 , respectively . The only current - gen GPU to make the ranking is the RX 7900 XTX .
AMD ’s gambling tax revenue might look grim , but it ’s in all likelihood not as high-risk as it seems . Consumer production are potential way tacky to produce , and with a huge net profit margin on AMD ’s enterprisingness patronage , it seems unlikely that AMD will call it quits entirely — but this is just speculation .
Once RDNA 4 GPUs are out , and RDNA 5 becomes more than just a guess , we may get some insight into what AMD is plan to do with its play GPUs . For the sake of gamers , let ’s trust that it stays — Nvidia could use the challenger .
