AMD’s graphics card gross sales simply took a nosedive

RX 7900 XTX installed in a test bench.
Jacob Roach / Digital Trends

AMD could make a few of the best graphics cards you should buy, however they aren’t promoting properly. In its financial results for the primary quarter of 2024,  AMD shared that gaming income was down 33% in comparison with the earlier quarter, and down 48% in comparison with the identical level final 12 months.

In whole, AMD introduced in $922 million in its gaming section within the first quarter. For reference, in Nvidia’s earlier income report, it reported $2.9 billion for its gaming section. AMD attributes the drop in income to “a decrease in semi-custom revenue and lower AMD Radeon GPU sales.”

The latter half of that rationalization speaks for itself, however the lower in semi-custom income is attention-grabbing. AMD is the driving power behind most gaming gadgets outdoors of a PC, together with the PlayStation 5, Xbox Series X, and PC handhelds just like the Asus ROG Ally and Lenovo Legion Go. As these gadgets begin to age, AMD is probably going feeling the influence of decrease gross sales.

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Graphics playing cards additionally play a giant function right here, nevertheless. At the start of the 12 months, AMD launched the RX 7600 XT, which wasn’t obtained properly. In our RX 7600 XT review, we wrote: “The RX 7600 XT comes in at an affordable price, and with an impressive memory spec in tow, but it doesn’t put up the numbers to justify its spot among budget-focused GPUs.”

The RX 7600 XT graphics card on a pink background.
Jacob Roach / Digital Trends

By distinction, Nvidia launched its RTX 40-series Super refresh at first of the 12 months, bringing some much-needed updates to 3 of Nvidia’s higher-end fashions and sustaining the vital breakpoints in worth from $600 up. Unlike the earlier era, we haven’t seen a refresh from AMD this 12 months, with the corporate as a substitute counting on reductions on older GPUs just like the RX 7900 XT. That’s excellent news for players, however clearly dangerous information for AMD’s graphics enterprise.

Discussing the income, Jean Hu, wxecutive vp of AMD, stated the next as reported by Wccftech: “We actually think the second half [of the year] will be lower than first half. That’s basically how we’re looking at this year for the gaming business. And at the same time, Gaming’s gross margin is lower than our company average … Q2 game is down a lot.”

An AMD Ryzen CPU socketed in a motherboard.
Jacob Roach / Digital Trends

Although gaming income took a giant hit, AMD is optimistic, and that primarily comes right down to new Strix Halo CPUs. AMD reconfirmed that these laptop computer chips are arriving within the second half of the 12 months and, in accordance with AMD CE Lisa Su, it’ll mark a giant turning level: “The AI PC products, when we look at the Strix products, it’s — they’re really well-suited for the premium segments of the market. And I think that’s where you’re going to see some of the AI PC content strongest in the beginning.”

Based on rumors surrounding Strix Halo chips, they appear extraordinarily highly effective. Some early leaks counsel that the APUs may boast energy on the same level as a PS5, and in one thing that would comfortably slot in a laptop computer. AMD hasn’t been shy about Strix Halo up thus far, so we’ll doubtless hear official particulars on the vary quickly.

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