AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022

At present, we’re studying how massive AMD’s gaming enterprise is for the very first time — and the reply is $5 billion a 12 months. That’s how a lot the corporate earned in 2021 from the “semi-custom” chips that go into Sony’s PS5, PS4, and each fashionable Microsoft Xbox, along with its discrete GPUs you’ll discover in graphics playing cards and high-end gaming laptops.

It seems to have turn out to be fairly a worthwhile enterprise, too — practically $1 billion in income in 2021 — and will exceed that this 12 months: in an earnings name, CEO Lisa Su says the corporate sometimes sees its most cash from sport consoles within the third quarter, and it’s on monitor for “report semi-custom annual income in 2022.”

In 2020, AMD truly misplaced $138 million on gaming… however in only one 12 months, working revenue rose by over a billion {dollars} to hit $934 million in 2021. Late 2021 is when Sony began turning a revenue on the PlayStation 5, although Sony nonetheless has provide constraints; Microsoft typically doesn’t flip a revenue on the Xbox itself, although AMD nearly definitely would as a chip provider.

This quarter, AMD’s gaming income is up 32 % 12 months over 12 months.

Gaming income for 2021: $5.6 billion.

That’s all in keeping with the corporate’s Q2 2022 earnings, as you may see within the slide above. As we talked about in Could, that is the primary quarter that the corporate’s damaged out gaming into its personal monetary phase: beforehand, sport console income was lumped in with embedded and knowledge middle, and GPUs had been lumped in with CPUs.

AMD’s planning to launch its RDNA three GPUs later this 12 months; they’ll use 5nm chiplets, and AMD’s promising “greater than 50 % generational enchancment in efficiency per watt.” Whereas AMD says it’s seeing the slowdown in demand for gaming graphics now — PCs on the whole are slowing down, BTW — it expects {that a} new launch will enhance demand within the fourth quarter.

Gaming is now AMD’s second-biggest enterprise after its “consumer” enterprise (desktop and pocket book processors), although its knowledge middle enterprise is at present blowing up, too. It’s at present up 83 % 12 months over 12 months.

Embedded now consists of Xilinx, an organization AMD completed buying in February.

Right here’s how a lot AMD’s income is rising on the whole.

Report income quarter after quarter, now as much as $6.6 billion.