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- Nov 11, 2012
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Gotta love how it goes from one-tier lower, to just have AMD paying everyone to buy them.Imagine if AMD not only made them free, but also paid people to take them.
No way can NVIDIA compete with that!!!![]()
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Gotta love how it goes from one-tier lower, to just have AMD paying everyone to buy them.Imagine if AMD not only made them free, but also paid people to take them.
No way can NVIDIA compete with that!!!![]()
Gotta love how some people think that AMD is a charity as opposed to a for-profit company.Gotta love how it goes from one-tier lower, to just have AMD pay everyone to buy them.
Gotta love how some people think that AMD doing nothing different will somehow gain back market share, and by just raising prices is the only way to make a profit. I can just see some people playing the lemonade stand game, "WHY ISN"T ANYONE BUYING MY LEMONADE! IT'S PRICED TO MAKE ME MONEY! I'M NOT GOING TO GIVE IT AWAY FOR FREE!" [Bangs keyboard on desk and walks away].Gotta love how some people think that AMD is a charity as opposed to a for-profit company.
Well if a lemonade costs you .99c to make you don't sell it for $1 either.Gotta love how some people think that AMD doing nothing different will somehow gain back market share, and by just raising prices is the only way to make a profit. I can just see some people playing the lemonade stand game, "WHY ISN"T ANYONE BUYING MY LEMONADE! IT'S PRICED TO MAKE ME MONEY! I'M NOT GOING TO GIVE IT AWAY FOR FREE!" [Bangs keyboard on desk and walks away].
This has been going on for years now.Gotta love how some people think that AMD is a charity as opposed to a for-profit company.
To make it simple to understand, AMD obviously isn't selling for $1 something that costs $0.99 to make. They have margins. It's how much profit they're willing to make, based on the amount they're willing to sell their product from how much it cost to make (includes material, research, marketing, etc). It's typically a ratio, like 4:1 being the high standard, and 3:1 being average, and 2:1 as just getting by. If you want to still sell at 3:1, you buy material in bulk, just like consumers save by buying in bulk. Well, if they have a market share at 10%, and let's just say that's 100,000 units. Well, they're going to make close to 100,000 units at a profit margin of 4:1, and that's a safe bet. An easy $400,000. Now, if they were able to make 4x 100,000 units, and still sold at 4:1 margins, they'd make $1,200,000 if they sold out. But, if market share is 10%, and they made 30% market share units, but again, only sold 10% market share, they lost $800,000. So, to increase market share, in order to save money by buying bulk, they have to create more units, and sell more units. You can only do that by lowering costs, so instead of 4:1, sell at 3:1. Let's say they gained back 20% market share at 3:1. Rather than losing $800,000 with unsold products, they increased their profit from $400,000 (4:1 at 100,000 units) to $900,000 (3:1 at 300,000 units).Well if a lemonade costs you .99c to make you don't sell it for $1 either.
AMD isn't going to gain back marketshare by just selling all their cards under cost. I mean how is that working out for Intel? I am sure your super hot on the b580, did you go buy one?
The only way AMD is gaining back market share is to make a superior product. It looks like once again they have made a somewhat more or less equal product. The 9060 will sell, its not going to perform miracles. Maybe next gen. Chances are a 6060 ti will perform almost identically to the 5060 ti... maybe AMD does something then. AMD won't really gain market share back unless they release a product that really is 10-20% faster in all things. Or Nvidia exits the market... which is actually just as likely.
I understand how margins work. AMD is likely based on their legal filings over the years making something around 20% or so on GPU silicon they sell below mid market. (some generations its lower if yields are sub par) Their OEMs generally make between $5-30 per card sold (which is an insanely small margin).To make it simple to understand, AMD obviously isn't selling for $1 something that costs $0.99 to make. They have margins. It's how much profit they're willing to make, based on the amount they're willing to sell their product from how much it cost to make (includes material, research, marketing, etc). It's typically a ratio, like 4:1 being the high standard, and 3:1 being average, and 2:1 as just getting by. If you want to still sell at 3:1, you buy material in bulk, just like consumers save by buying in bulk. Well, if they have a market share at 10%, and let's just say that's 100,000 units. Well, they're going to make close to 100,000 units at a profit margin of 4:1, and that's a safe bet. An easy $400,000. Now, if they were able to make 4x 100,000 units, and still sold at 4:1 margins, they'd make $1,200,000 if they sold out. But, if market share is 10%, and they made 30% market share units, but again, only sold 10% market share, they lost $800,000. So, to increase market share, in order to save money by buying bulk, they have to create more units, and sell more units. You can only do that by lowering costs, so instead of 4:1, sell at 3:1. Let's say they gained back 20% market share at 3:1. Rather than losing $800,000 with unsold products, they increased their profit from $400,000 (4:1 at 100,000 units) to $900,000 (3:1 at 300,000 units).
Hopefully that makes sense. It's a safe bet that if your market share is 10%, you make 10% of the market share of products, and just charge the market rate. However, if you want to make more money, you need to increase the amount of products made, sell more units, and cut costs by buying more material in bulk. Just play the lemonade game, you'll have fun, and figure it out.
Yeah, so by that account, AMD isn't going to change anything, their market share is going to stay relatively the same, or dip even lower. They're playing the safe bet, even with NVIDIA shooting themselves in the foot, "AMD never misses an opportunity to miss an opportunity".I understand how margins work. AMD is likely based on their legal filings over the years making something around 20% or so on GPU silicon they sell below mid market. (some generations its lower if yields are sub par) Their OEMs generally make between $5-30 per card sold (which is an insanely small margin).
AMD is going to sell all the 9000 series cards they produced, they haven't over produced so they aren't going to get stuck with anything. They also have a ceiling. Even if you assume everyone buying a 60 class card this gen is only going to buy AMDs product because its X or Y amount cheaper. Their market share can still only grow so much in one generation. Is AMD willing to drop 20% margin to 2% margin to gain 2-4% market share? I doubt that.
The only way the market share really changes, is if people buy AMD over NV based on merit for 2-3 generations at least. The majority of the market isn't on a current generation, nor are they on the most recent previous generation. The majority of the market is using 2000-3000 class hardware. For market share to really shift, one generation isn't enough. Even if AMD decided to operate as a gamer charity and give away 90% of their cards this generation. They have not (nor could they) produce enough to fill all the demand. They would also have to repeat that trick for 2 more generations of cards. There is no way to "Sale" yourself to #1. It doesn't work, in any industry.
Never miss an opportunity to not understand basic economics. Sell for a loss = profit?Yeah, so by that account, AMD isn't going to change anything, their market share is going to stay relatively the same, or dip even lower. They're playing the safe bet, even with NVIDIA shooting themselves in the foot, "AMD never misses an opportunity to miss an opportunity".
Never miss an opportunity to not understand basic anything.Never miss an opportunity to not understand basic economics. Sell for a loss = profit?
True. AMD hasn't performed well enough this generation to gain a ton of market share. it does seem they have performed well enough to not really loose any either. This is just another generation of hold your ground.Yeah, so by that account, AMD isn't going to change anything, their market share is going to stay relatively the same, or dip even lower. They're playing the safe bet, even with NVIDIA shooting themselves in the foot, "AMD never misses an opportunity to miss an opportunity".
The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
Gaming segment revenue in the quarter [4th quarter 2024] was $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue.
- For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year, primarily due to a decrease in semi-custom revenue.
Gaming segment revenue was $1.4 billion [4th quarter 2023], down 17% year-over-year and 9% sequentially, due to a decrease in semi-custom revenue, partially offset by an increase in AMD Radeon™ GPU sales.
- For 2023, Gaming segment revenue was $6.2 billion, down 9% compared to the prior year primarily due to lower semi-custom sales.
Gaming segment revenue was $1.6 billion [4th quarter 2022], down 7% year-over-year driven by lower gaming graphics sales partially offset by higher semi-custom product revenue. Operating income was $266 million, or 16% of revenue, compared to $407 million or 23% a year ago. The operating income and margin decreases were primarily due to lower graphics revenue.
Revenue of $23.6 billion [2022] was up 44% over 2021 driven by higher Embedded, Data Center, and Gaming segment revenue, partially offset by lower Client segment revenue. On a combined AMD and Xilinx company basis, 2022 pro forma revenue was $24.1 billion, up 20% compared to $20.1 billion in 2021.
Almost non of that has ever had anything to do with dPGU though. That is what happens to your numbers when 3/4 of your gaming revenue comes from 2 consoles. One is now 5 years old... and the other tanked, and it looks like MS will probably exit the console market.It's been a bad 3 years in the AMD gaming segment revenue. From $23.6 billion in 2022, to $6.2 billion in 2023, and $2.6 billion in 2024. If AMD's going to stay the course, it's not going to get any better.
https://ir.amd.com/news-events/pres...-quarter-and-full-year-2024-financial-results
https://ir.amd.com/news-events/pres...-quarter-and-full-year-2023-financial-results
https://ir.amd.com/news-events/pres...-quarter-and-full-year-2022-financial-results
Almost non of that has ever had anything to do with dPGU though.
Of course they are included. My point is they made 23.6 billion in 2022... the majority of which was sales of Playstations. Its not like dGPU dropped billions of dollars it was never a 20 billion dollar segment for them.
23.6 billions in gaming revenues in a year ? That sound more like AMD totals revenues, it was 6.8 I think for 2022, 5.6 for 2021.
I don't think the APU's are included in the Gaming segment. I think it's either in the Client segment, or the Embedded segment.Of course they are included. My point is they made 23.6 billion in 2022... the majority of which was sales of Playstations. Its not like dGPU dropped billions of dollars it was never a 20 billion dollar segment for them.
The Majority of their gaming sales numbers are the semi-custom SOC products (Playstation / Xbox). 2022 was the first big sales year for the PS5 after a luke warm launch. By the end of 2022 Sony sold 38.4 million PS5s. Microsoft moved 8.65m Xbox X/S in '22.
In 2024 Sony only sold 18.5m PS5/PS5 pros... Microsoft only sold 3m Xboxes.
in 2022 AMD was paid MORE per unit on new hardware (cause that is how console chip contracts work) selling a total of 47.05 million gaming SOCs to Sony and MS. In 2024 they got paid much less per unit for now 5 year old SOCs for a total of 21.5m units.
AMD is happy to have console business, but that is the catch. Big sales in years 1-3, less margin and lower sales for 1-3 years after that until companies redesign and do it again.
semi-custom SOC are the playstation/xbox soc (possibly steamdeck being a custom SOC for gaming as well), 5700G/StrixHalo type of APU goes into client segment.I don't think the APU's are included in the Gaming segment. I think it's either in the Client segment, or the Embedded segment.
Embedded is embedded. Console are reported as semi-custom under gaming. In general if you buy a product with AMD anything in it from a retailer its gaming. Embedded is generally for specific industries and not really sold retail. Things like medical imaging, thin clients that type of thing.I don't think the APU's are included in the Gaming segment. I think it's either in the Client segment, or the Embedded segment.
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The issue isn't that AMD doesn't make good GPUs: AMD does.True. AMD hasn't performed well enough this generation to gain a ton of market share. it does seem they have performed well enough to not really loose any either. This is just another generation of hold your ground.
AMD loves to miss opportunities. To be a bit fair to them on this one though. I don't think anyone really could predict Nvidia would turn out a wonky ass crap generation, AND simultaneously screw up their drivers. Jensen being an ass and saying ass things, is about the only thing we could have predicted.
If AMD really does want to gain marketshare. Lisa needs to beef up the Radeon design dept, give them more resources then they ask for. Task them with a 50-60% uplift in one generation and then cross her fingers they can get 30-40%. It seems clear Nvidia is going to try and keep selling the same performance for the same $ for as long as they can. However its AMD. If they take the swing and miss they will deny trying, if they do have a hit it will likey be via a Nvidia fail and their marketing team will say stupid jabaited em, or try and clown their ram... only to release a product with the same ram a month later. Its painful watching AMD try, not try, pretend they aren't trying, pretend they are trying. They really do need to fire their PR team regardless.
I mean, looking at the 5060xt vs 9060 or the 5070ti vs 9070.... isn't clear that Nvidia as once again the edge of best performance per die mm (while no node advantage this time around, more a deficit) ?I don't think anyone really could predict Nvidia would turn out a wonky ass crap generation
But they obviously can't in some market space with competition, 5060 is 25% more performance per dollar than the previous gen for a reason (either by being 25% faster than the 4060 or 25% cheaper than the 4060ti), same would happen the moment any competition show up.It seems clear Nvidia is going to try and keep selling the same performance for the same $ for as long as they can
With what they achieved to do around the 9070 series launch, the zen5 becoming a efficacy gain talking point and how great AVX512 will be for regular people looking for a cpu right now, the market demand angle for the 9060xt 8GB.. I do not know, a lot of what people are actually angry about is way above the PR team paygrade I feel.They really do need to fire their PR team regardless.
Whatever AMD is doing the buyers are incentivizing 16GB models. If 16GB models sell and 8GB models sit on the shelf they'll make 16GB models. Just had a look at Newegg and 8GB MSRP cards are still available, but the 16GB models left in stock are $390+. They had $350 MSRP 16GB cards this morning. I probably could have bought one, but I was just checking because I was curious and didn't actually try.People keep bashing AMD for the 8gb cards, which they should be but the AIBs are the idiots who are making them. Anyways at Newegg at time of this post, 3 available 16gb versions available and 9 8gb versions. I hope it is people that are refusing to buy the 8gb junk cards and is the reason why they are still available. Why would the AIBs even waste time with the 8gb version and not make all 16gb version and sell for a larger premium/profit? Is AMD actually incentivizing 8gb production from the AIBs?
I am not sure how reliable overclocker.uk most sold lists is and the number of solds during the day they show:Just had a look at Newegg
I'm sure hardware Unboxed will do a YouTube video shitting on the 8GB model. They already did it to NVidia, and their launch review of the 9060XT 16GB version had plenty of hints that they were planning on trashing the 8GB version in an upcoming video.Will be interesting to see benchmark of b580 vs 9060xt vs 5060/5060ti with realistic CPU not just 9800x3d, which would be a rare combo
https://hardforum.com/threads/9060xt.2041539/page-2#post-1046130564I'm sure hardware Unboxed will do a YouTube video shitting on the 8GB model. They already did it to NVidia, and their launch review of the 9060XT 16GB version had plenty of hints that they were planning on trashing the 8GB version in an upcoming video.
And yeah, 9800X3D + RX 9060XT will be a rare combo. I have a little portable rig I built with an ARC B580 and an R5 9600X from a $300 Microcenter combo. Runs pretty well really, and it's a lot closer to what people will actually do with an RX 9060XT. There are plenty of idiots out there, but anyone who knows what they're doing will start by getting a proc that doesn't suck and get a better vid card. So no 9800X3D + RX 9060XT. 9800X3D + older card ok, nothing wrong with doing the proc/board/ram now and upgrading your GPU later.
Exactly what I expected.
I can see that for the Protools PC guys that bother me from time to time with building a system for them, since their 3d acceleration demands are not as high as it would be for a game.And yeah, 9800X3D + RX 9060XT will be a rare combo.
I've got no love for them either, they've lost their marbles.People keep bashing AMD for the 8gb cards, which they should be but the AIBs are the idiots who are making them. Anyways at Newegg at time of this post, 3 available 16gb versions available and 9 8gb versions. I hope it is people that are refusing to buy the 8gb junk cards and is the reason why they are still available. Why would the AIBs even waste time with the 8gb version and not make all 16gb version and sell for a larger premium/profit? Is AMD actually incentivizing 8gb production from the AIBs?
Anyone pick one of these up?
7800xt is 16GB (the 7700xt is the one at 12GB), at $370 it would be quite competitive with the new offering.i can get a 7800xt for $20 more, its still faster but has less vram and no new shiny features.