Come on, do you really think AMD was losing money on Zen, Zen+ and Zen2 chips - including R&D? Absolutely not. Yes it's normal for new chips to cost more than the ASP of 1.5 year old chips. That's standard. What's not standard is the new chips commanding a significantly higher price than those old chips made their debut at. For the lower end chip, it's nearly a 20% increase in original MSRP - even more so when you factor in that none of them come with HSF anymore except the 6c chip.
That is almost a straw man. I very clearly stated that AMD didn’t make much profits last year, which means that they did not sell at a loss overall. You can’t just go by the production cost since that has no relation to the price. The development cost has to be taken into account. Earlier Zen iterations were way underpriced by market standards of the time. They had to do that to gain market share though. How much R&D budget do you think Intel and Nvidia have compared to AMD? I am not going to look it up because I know the answer is a tiny fraction. AMD is competing with both now and with ARM in the future.
It is amazing that they are competing at all and here they are taking the lead. A large part of that is Intel’s complete process tech fumble, but Intel obviously wasn’t prepared for this level of competition regardless of the process tech issues. Even if 10 nm wasn’t near complete failure, they would have needed to accelerate their roadmaps significantly and large companies usually don’t do well when that happens. I don’t really expect Intel to be that competitive again until 7 nm stacked chips, and even then, it is in doubt. We don’t know what AMD and TSMC have in the pipeline for Zen 4.
AMD has been able to get by with lower R&D cost due to their modular architecture. Zen 1 was literally one chip for all. They taped out a single chip that had to cover their entire market. It was quite good, but it had a lot of wasted silicon. The single chip desktop parts had a large infinity fabric switch that was not needed and increased latency. Zen 2 fixed that. It is still one cpu die which maximizes wafer allocation and a cheap IO die at GF. No real wasted silicon except ThreadRipper, which only uses half the IO die. It is a lower volume part though. To continue to compete, AMD needs to make a bunch of different monolithic parts for mobile which cost R&D. Just taping out a chip cost millions for the mask set. It looks like we are going to get perhaps an ultra low power mobile part (perhaps based on Zen 2-ish console cpus) and a few Zen 3 variants. They probably aren’t going to make much profit again with how much they must be funneling into R&D. How may GPUs and APUs did they tape out or are coming soon? They are going to need a lot more R&D money going forward with more specialized products and market segments.
Anyway, AMD is not screwing over enthusiast at all. It is the opposite actually. The 50$ increase is across the board. Enthusiast are more likely to buy the expensive parts where the 50$ is a small percentage of the cost. The mainstream will just buy an OEM system or the less than 300$ parts mostly. People make a big deal out of the high end stuff when it actually isn’t that high of volume. Most of my friends are gaming on less than 200$ processors.