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 layoffs at the company, and now AMD is releasing disturbing data about its custom gaming chip division.
As you probably know, AMD’s chips are also used in gaming consoles, and the Xbox Series, PS5, and Steam Deck all feature them. Now, with the release of the Financial results for the second quarter of 2024we see a 59% drop in gaming revenue, a drop of more than $648 million. While the report released on Tuesday alludes to an overall decline in hardware sales, it’s very likely that the significant drop in Xbox Series sales reported by Microsoft is a good portion of that hole.
Still, there is little cause for concern. AMD has invested 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 as if that wasn’t enough, all recent rumors suggest that the Nintendo Switch successor will also have AMD technology under the hood.
What do you think about the overall decline in hardware sales – will it accelerate the adoption of the next generation or are we on the verge of a larger paradigm shift?
Thanks, Shacknews.
