The crisis at the world’s leading chipmakers is shaking the entire technology sphere. First with Intel’s flawed 13th and 14th generation, followed by the announcement of thousands of lay-offs at the company, and now AMD is releasing troubling data on its custom gaming chip division.
As you probably know, AMD’s chips are also used in game consoles, and the Xbox Series, PS5 and Steam Deck all feature them. Now, with the release of financial results for Q2 2024, we see a 59% drop in gaming revenue, down more than $648 million. While the report released on Tuesday alludes to an overall drop in hardware sales, it’s very likely that the significant decline in Xbox Series sales reported by Microsoft is a good chunk of that hole.
Still, there is little cause for concern. AMD has been investing heavily in AI development and the AMD Ryzen AI 300 Series processors, as well as the new AMD Ryzen 9000 Series processors based on the Zen 5 architecture. And if that wasn’t enough, all recent rumours point to the Nintendo Switch successor also carrying AMD technology under the bonnet.
What do you think of the general decline in hardware sales – will it accelerate the launch of the next generation, or are we looking at a bigger paradigm shift?
Thanks, Shacknews.