AMD will earn 238M$ this year from consoles...

[vampirr]

PlayStation 4 has been presented, and we will soon know the new Xbox 720th Both platforms will most likely debut in the last quarter of this year and probably very quickly bring big profits. Not only for Sony and Microsoft, but also AMD.

It is the company from Sunnyvale to provide the most vital components for both devices, and it seems that a lot of this money goes to. Interestingly, another opinion is Nvidia, which said recently that production of the SoC for Sony's PlayStation 4 was unprofitable. It is interesting, however, is whether it actually came from the analysis of the company, or whether they are merely words to sweeten the fact of losing the competition with AMD.

http://www.bubblews.com/news/345357...box-720-will-earn-288-million-this-year-alone

Thanks ThePeasant:
http://www.xbitlabs.com/news/multim...to_Hit_Around_5_Million_in_Total_in_2013.html
http://blogs.barrons.com/techtrader...uy-bad-pc-market-notwithstanding/?mod=BOLBlog

This subject also on Overclock.net
http://www.overclock.net/t/1375043/...box-720-will-earn-288-million-this-year-alone

 

[Liquid_Static]

nVidia must have SOMETHING up it's sleeve...

 

[Piroko]

Anyone knows the original source? Reads like a google translation.

 

[MisterMac]

Yea - wondered too.

Vaguely mentions one of the larger investment\analytical firms in the world - but good luck finding said report.


What's the geusswork from us forum peeps - on the average margin\cogs for a 60 USD jaguar APU?

 

[RampantAndroid]

This is assuming both consoles are adopted quickly...which might not be a good bet?

 

[vampirr]

This is assuming both consoles are adopted quickly...which might not be a good bet?

Quoting from the article:

According to calculations by Macquarie Equities Research, but this year may be sold around 5 million copies of the new consoles. These analyzes are based on a fairly pessimistic visions, which include loss of interest in all gaming platforms, an example of which can be even weak sales of the Nintendo Wii U.

 

[svenge]

Considering that AMD lost $1.2 BILLION last year, I wouldn't break out the champagne...

 

[ThePeasant]

Reminds me a lot of this:

http://www.xbitlabs.com/news/multimedia/display/20130319235900_Sales_of_PlayStation_4_Xbox_Next_to_Hit_Around_5_Million_in_Total_in_2013.html

The link from above article:

http://blogs.barrons.com/techtraderdaily/2013/03/18/amd-macquarie-ups-to-buy-bad-pc-market-notwithstanding/?mod=BOLBlog

 

[vampirr]

Considering that AMD lost $1.2 BILLION last year, I wouldn't break out the champagne...

Well that's a pessimistic vision of how much AMD can earn, if this console generation lives for 7 years AMD can earn aprox. 1.666B$ so each year they can invest 238M$ into R&D but since sooner or later we are out of economical recession. I think they could most optimistically can earn in 7 years 3B$ from PlayStation 4,Xbox 720 and not including Wii U that may risen soon also Sony will need an new handheld in next 3 to 4 years and AMD will be the candidate to maintain compatibility with with PlayStation 4. Microsoft may decide to make a handheld also if they want to compete with Sony, maybe...

Gabe Newell may choose for SteamBox AMD since he wants an affordable PC console and he may look at Kaveri because of HSA and since all next generation consoles use one or another AMD's hardware.

Then we have the tablets and hybrid tablet-laptops that AMD will most likely dominate thanks to their APU's and in the future HSA technology, anyway AMD may have a good contract with Razer... Don't believe me?:

https://twitter.com/amd_roy/status/315148545185431554

So Razer has been mentioned, so maybe AMD will have in next Razer's product(laptop, computer, console?, razer edge, etc/what ever...)

 

[Torn Mind]

I'm sure many of their workers command a six-figure salary. This would help pay their wages.

 

[ShintaiDK]

Sounds like profit and revenue got mixed up.

 

[vampirr]

It is possible they mixed or maybe they din't... Hmmm...

 

[Pilum]

Sounds like profit and revenue got mixed up.

At least the Xbitlabs article did go into that, there is an estimated $228 million console revenue expected for Q4. They do state that embedded profits are expected to be quite low. Don't know what that means in margins, 30%?

 

[Centauri]

It's really hard for a laymen to guess how much money AMD will actually pocket on consoles this year, and it's because nobody or their mother knows retail availability dates for either console or even the specs for one of them. On top of that, and particularly where AMD is concerned, actual consoles sales this year will matter a lot less than console production.

Anybody who thinks they already know what month and week both consoles will enter mass production or how many will be manufactured in anticipation of the holidays is pulling the number out from very high up their butt.

 

[postmortemIA]

This contract win is a question of the existence for AMD, while not much so for nVIDIA. I am glad that AMD won something big, and this sure is. With PC & console market in somewhat decline, this is something they can hang on for upcoming years.

 

[SlowSpyder]

Well that's a pessimistic vision of how much AMD can earn, if this console generation lives for 7 years AMD can earn aprox. 1.666B$ so each year they can invest 238M$ into R&D but since sooner or later we are out of economical recession. I think they could most optimistically can earn in 7 years 3B$ from PlayStation 4,Xbox 720 and not including Wii U that may risen soon also Sony will need an new handheld in next 3 to 4 years and AMD will be the candidate to maintain compatibility with with PlayStation 4. Microsoft may decide to make a handheld also if they want to compete with Sony, maybe...

Gabe Newell may choose for SteamBox AMD since he wants an affordable PC console and he may look at Kaveri because of HSA and since all next generation consoles use one or another AMD's hardware.

Then we have the tablets and hybrid tablet-laptops that AMD will most likely dominate thanks to their APU's and in the future HSA technology, anyway AMD may have a good contract with Razer... Don't believe me?:

https://twitter.com/amd_roy/status/315148545185431554

So Razer has been mentioned, so maybe AMD will have in next Razer's product(laptop, computer, console?, razer edge, etc/what ever...)



Statements that are not based on historical fact are forward-looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements.

FTFY. :awe:

 

[Fx1]

A 7970M makes AMD probably $150 inside a notebook maybe. So 60$ for an entire APU is not much in comparison. This is why its low margin. The prospect of selling probably 200m of these is where it pays back

 

[Centauri]

If the PS3 is any indication, AMD could be looking at $200~ a pop for the APUs.

 

[scannall]

One thing some of you may be forgetting, is that nVidia doesn't have the license to make x86 processors. Nor the engineers and talent required. So their potential earnings are quite a bit lower than AMD's for the same project.

 

[Sleepingforest]

Okay, if we look at sales of the Xbox 360, PS3, and Wii together worldwide, you'll see that roughly 250 million units were sold. This is a 25% increase in units sold from the previous generation (the Xbox, Gamecube, and ridiculously long lived PS2 sold about 200 million units together). So let's say that the gaming market is gaining momentum and will expand 30% from last year--that would be 325 million units sold worldwide. Then assume that an extremely generous 10% of the units are never sold, but are manufactured to get to 365 million units (unlikely to happen in mature companies like Microsoft/Sony/Nintendo, but who knows). If we take Centauri's link as true, that's a total of 73 billion USD in revenue (not profit) over the next 7-10 years.

 

[Cookie Monster]

One thing some of you may be forgetting, is that nVidia doesn't have the license to make x86 processors. Nor the engineers and talent required. So their potential earnings are quite a bit lower than AMD's for the same project.

One thing that you forgot to consider is that nVIDIA is heading toward the ARM route instead (project denver) and the fact that it'd be insane just for anybody to even enter the x86 market at this point in time. Simply put, they don't need it.

 

[Centauri]

Okay, if we look at sales of the Xbox 360, PS3, and Wii together worldwide, you'll see that roughly 250 million units were sold. This is a 25% increase in units sold from the previous generation (the Xbox, Gamecube, and ridiculously long lived PS2 sold about 200 million units together). So let's say that the gaming market is gaining momentum and will expand 30% from last year--that would be 325 million units sold worldwide. Then assume that an extremely generous 10% of the units are never sold, but are manufactured to get to 365 million units (unlikely to happen in mature companies like Microsoft/Sony/Nintendo, but who knows). If we take Centauri's link as true, that's a total of 73 billion USD in revenue (not profit) over the next 7-10 years.

And looking at $70bn of revenue, even assuming razor tight margins of 10%, AMD would easily be looking at $250m profit per quarter. And to put that in context; that would have entirely weighed off the cash AMD gushed last year during arguably the worst period in its history.

 

[frozentundra123456]

If the PS3 is any indication, AMD could be looking at $200~ a pop for the APUs.

Sony took a beating in the intial time of the PS3 because the retail price was way too high, and they still lost money on the hardware for every console sold.

I have no inside information, but my guess is that with the PS4 they were determined to not repeat the same mistake, and went with a more conventional and readily available APU.

Since the highest end APU sells for about 130.00, I seriously doubt they are getting 200.00 a pop for the one in the PS4, especially since Sony should have been able to negotiate some kind of bulk discount for such a large (relatively) number of units.

 

[scannall]

One thing that you forgot to consider is that nVIDIA is heading toward the ARM route instead (project denver) and the fact that it'd be insane just for anybody to even enter the x86 market at this point in time. Simply put, they don't need it.

Except, at the demands of developers Sony decided a while ago to use x86. Also, ARM isn't powerful enough for a next gen console. Meaning nVidia would only have the video card portion, with either Intel or AMD getting the CPU side.

With Intel GPU technology being pretty craptastic, that pretty much leaves AMD in the strongest position.

 

[Centauri]

Sony took a beating in the intial time of the PS3 because the retail price was way too high, and they still lost money on the hardware for every console sold.

I have no inside information, but my guess is that with the PS4 they were determined to not repeat the same mistake, and went with a more conventional and readily available APU.

Since the highest end APU sells for about 130.00, I seriously doubt they are getting 200.00 a pop for the one in the PS4, especially since Sony should have been able to negotiate some kind of bulk discount for such a large (relatively) number of units.

Consoles lose significant money for their manufacturers. Always have. The one exception to that has been Nintendo, but they've only been selling their last few generations of consoles right around the cost to manufacture, which means they've still been losing money when factoring in things like logistics, warranty support and marketing.

Console companies make money on the backend; accessories, software and now services. It's just the model for the environment.

The cost of a desktop APU is also fairly irrelevant because what AMD designed for Sony (and MS) is significantly more capable, both on the CPU, GPU as well as memory interface fronts.