Image

AMD Confirms Decline in Radeon GPU Sales

5/03/2024

 https://www.amd.com/system/files/2023-08/2029064-radeon-image-quality-1260x709.jpg

AMD Confirms Decline in Radeon GPU Sales

In its Q1 2024 financial report, AMD has highlighted a significant decline in its “Gaming” revenue, primarily attributed to lower sales of its Radeon GPUs. This downward trend spans both the past two financial quarters and year-on-year figures.

AMD Radeon RX GPUs Sale

Let’s delve into the details:

  1. Revenue Breakdown:

    • AMD’s Q1 FY24 statement reveals a total revenue of $5.5 billion, representing a 2% increase from the previous year.
    • The “Data Center” and “Client” segments drove this growth, with an impressive 80% and 85% increase, respectively.
    • However, the “Gaming” segment experienced a painful 48% decline in revenue, contributing to the overall slump.
    • Notably, this steep decrease is even more concerning when compared to the previous quarter, where it dropped by 33%.

  2. Radeon GPU Struggles:

    • Despite AMD’s efforts to compete with Nvidia, its Radeon GPUs face an uphill battle.
    • The Steam Hardware Survey confirms this, with the Radeon RX 7900 XTX being the only current-generation AMD graphics card to earn an individual spot outside the nebulous “Other” category.
    • Even then, its 0.16% market share pales in comparison to other cards, including Nvidia’s GeForce RTX 4090.

  3. Challenges and Impact:

    • The decline in Radeon GPU sales isn’t the sole issue. AMD also faces a slowdown in console sales.
    • Both the Xbox Series X/S and PlayStation 5 utilize custom SoCs with Radeon graphics, but recent sales figures haven’t been stellar.
    • Surprisingly, the popularity of handheld devices like the Steam Deck and ROG Ally hasn’t significantly bolstered AMD’s position.

  4. Hope for a Turnaround:

    • AMD needs a change in direction for its Radeon GPUs.
    • While the company performs well in rasterization (as seen in our Radeon RX 7800 XT review), it lags behind Nvidia in ray tracing and performance-enhancing features.
    • The upcoming RDNA 4 microarchitecture may hold the key to turning the tide and staging a Ryzen-style comeback.

In summary, AMD’s Radeon GPU sales have indeed nosedived, prompting the need for strategic adjustments. As the primary competitor to Nvidia’s GeForce GPUs, AMD must find innovative solutions to regain market share and address the challenges ahead. 🚀