Sony and Microsoft really are propping up AMD's beleaguered GPU business right now

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If it weren't for the consoles, would we still have Radeon GPUs?

and while it is better news than estimates were predicting, it still tells a sorry story for its GPU division. The gaming segment of AMD's business is still profitable, and all that is down to the work it has put into bagging the bragging rights to power both Microsoft and Sony's games consoles.

Both the PlayStation 5 and Xbox Series X/S use AMD semi-custom silicon, and that's part of the company's gaming segment. It's been gaining revenue consistently throughout this year, but, because of the continued decline inGPU sales, both its revenue and operating income are down compared to its Q1 results, let alone the year-on-year numbers.

We're used to seeing things drop compared to the same period last year, which, for AMD, was the peak of its revenue results potentially ever. The company's revenue was $6.6 billion in Q2 2022, and is $5.4 billion for Q2 this year . But where things seem to be picking up in the data center , and most especially in the client segment—CPUs and APUs—there's still a significant continued downturn for graphics.,"revenue declined 4% year-over-year to $1.

Gaming is still where AMD sees its highest revenue, though at the same time last year that was the client/CPU segment. You could argue this paints a more bleak picture for processors, given that has seen revenue halve in twelve months, but while its operating income is actually a loss of some $69 million that does represent a significant growth upon where it was at the start of the year. in signalling the PC industry bouncing back as we move on through 2023 and into 2024.

 

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