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AMD CFO blames lower console sales demand for muted financial results, strong demand for latest Ryzen mobile & desktop processor
- Thread starter ArtHands
- Start date
DragonNCM
Member
Ofc console sales are in decline.....MS & now Sony starting to put games day one on PC, gamepass, AAA exclusive games are distant memory how good they suppose to be & moving consoles from shelfs, mobile games wrack everything and soon PC market will decline also with inflated prices of their GPU's.
Lowest end ( current generation GPU) what plays games at absolute shit settings cost more then high end GPU 5 years ago who can play today games better with higher settings( - useless RT).
Global inflation & mindless wars putting you in the position to think more about your stomach, family, paying bills & surviving from day to day then some hobby.
The more poorer people gets the less consoles & games will be sold, besides that you have mobile shovelware & "Gamepass" to entertain you for free or little fee.
Time is gone when AAA games & low cost gaming was a fun.
Lowest end ( current generation GPU) what plays games at absolute shit settings cost more then high end GPU 5 years ago who can play today games better with higher settings( - useless RT).
Global inflation & mindless wars putting you in the position to think more about your stomach, family, paying bills & surviving from day to day then some hobby.
The more poorer people gets the less consoles & games will be sold, besides that you have mobile shovelware & "Gamepass" to entertain you for free or little fee.
Time is gone when AAA games & low cost gaming was a fun.
Negotiator101
Member
Possibly because the PS division has been a train wreck for the entire generation so far? Cancelled projects left right and centre, the stupid ass Bungie acquisition, and the total mismanagement of first-party studio's.
If not for the impressive hardware sales (going by the comments of Totoki not enough) they'd be in a very precarious position.
"How can we, given the situation, put our product lines together to make it affordable, without relying on steep discounts, to reasonably sell them to continue our commercial journey on a sustainable basis?"
Totoki
You see when a parent company relies so heavily on a division to be highly profitable and it isn't, then said company act's.
BlackTron
Member
I love consoles but basically as PC sidekicks. Because they have gotten too samey, there's no motivation left to upgrade. I have a PS4 Pro with a SSD in it and a cheap used Series S. To stay in those ecosystems, this suits me much better than $499 consoles that will just suck slightly less compared to PC. Especially when those ecosystems are bleeding onto PC at an alarming rate.
Mr Moose
Member
Isn't he talking about making games? And he shit talked Bungie? That has nothing to do with AMDs results.
GHG
Member
What does any of that have to do with console sales and what AMD have said?
It's been such a" train wreck" but yet:
And:
SIE's largest lead in 20 years
Sales-Age - US LTD: PS5 20.16 m, X/S 14.11 m
SIE's largest lead in 20 years PS5 adoption has skyrocketed over the last 18 months Nov 2022 GoW Ragnarok #2 Dec 2022 GoW Ragnarok #3 Jan 2023 Forspoken#7 / GoW Ragnarok #8 Feb 2023 The Last of Us: Part 1 #6 Mar 2023 The Last of Us: Part 1 #5 Jun 2023 FF XVI #2 Jul 2023 FF XVI #5 Oct...
Sorry to say it, but in reality there's only been one "train wreck" of late, and it's the one you've been riding very hard for the entirety of your existence.
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Negotiator101
Member
What does any of that have to do with console sales and what AMD have said?
It's been such a" train wreck" but yet:
And:
Sales-Age - US LTD: PS5 20.16 m, X/S 14.11 m
SIE's largest lead in 20 years PS5 adoption has skyrocketed over the last 18 months Nov 2022 GoW Ragnarok #2 Dec 2022 GoW Ragnarok #3 Jan 2023 Forspoken#7 / GoW Ragnarok #8 Feb 2023 The Last of Us: Part 1 #6 Mar 2023 The Last of Us: Part 1 #5 Jun 2023 FF XVI #2 Jul 2023 FF XVI #5 Oct...www.neogaf.com
Sorry to say it, but in reality there's only been one "train wreck" of late, and it's the one you've been riding very hard for the entirety of your existence.
It has to do with a decline in gaming, it involves the entire industry. Totoki as you know is going through the PS division with a fine tooth comb to save money. Given the strong sales last fiscal and this year they'll be significantly lower, one would imagine that the powers that be will be making big cuts.
GHG
Member
No, the PS5 and Switch are doing well when compared to their predecessors and there is only one laggard but you don't want to admit it for some reason. The only thing that concerns AMD is hardware sales, they don't benefit in any other way.
If you actually read the financial results along with the earnings call transcripts you'd realise playstation are experiencing an issue with margins due to inflationary and currency exchange pressures, rather than anything to do with sales numbers/revenues. But again, none of that has anything to do with AMD.
FYI, the first part of the thread title is as follows:
AMD CFO blames lower console sales
Woopah
Member
There's been some mistakes for sure, but I'd hardly say it's a train wreck when Sony has published several critical and commercial successes on the PS5.
The increase in software sales and their decision to do fewer price cuts on hardware and games should help with profitability in the coming years.
poppabk
Cheeks Spread for Digital Only Future
Which means that the PlayStation has an over-sized effect on hardware revenue for AMD year to year. A 50% drop in xbox sales would maybe result in a 20% drop in console revenue and maybe a 10% drop in gaming revenue.
This is Q1 revenue, presumably when Sony missed its lofty targets last year it probably meant that they had a couple of million consoles of unsold stock, so it would make sense that Q1 would be down. GPU revenue being down is also likely a big factor.
asdasdasdbb
Member
Last year PS5 was like 80% of the Gaming revenue. I believe Gaming includes the Steam Deck as well as their entire dGPU product line.
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Negotiator101
Member
You worked it out on your own.
Negotiator101
Member
Listen the top guys at Sony are not happy with the margins on a very good year for hardware. How you think they'll react with less sales this year?
poppabk
Cheeks Spread for Digital Only Future
If that is true then - barring some weirdly lopsided quarterly breakdowns - a large portion of this drop has to be playstation. The Q1 drop after Sony overstocking last year is fine and to be expected - but the projections for the rest of the year isn't a good sign.
Tams
Member
I’ve had the AMD stock on and off over many years, for some reason they always drop whenever I have them… Like now. Then they go up when I sell…
As AMD are a well-established company, you do know that you don't have to sell your shares whenever they dip? They aren't going to go out of business (well, not any time soon).
Woopah
Member
Well their margins on hardware aren't particularly great, and it's software, add ons and subscriptions where they make a lot of profit.
The revenue from those three areas can go up, even if hardware goes down. So it's perfectly possible that they have more profits next fiscal year than this fiscal year.
So a lot will depend on the lineup for those 12 months. It's looking a bit light currently, but there's more stuff to be announced (launch timing of GTA VI could make a big difference).
mayham2199
Member
I think the last quarter is the last time Bungie payment is included as well. So that should be removed next quarter and increase profits.
Shadowstar39
Member
Yep, in my 40s as well and feel it. The games just aren't made to for us anymore which is weird as we have the money for it. They court the gaas crowd.
Although gems do come through. Dragons Dogma 2, and unicorn overlord are excellent (both made in Japan btw), Stellar blade looks great too, but I already blew my gaming budget, it will have to wait.
Oh and indies like balatro and manor lords are amazing too.
When I got my series x for xmas (I own all the systems and a gaming pc), I only bought 1 new game, everything else was buying old 360 discs for games delisted or digital 360/og xbox games, as I never owned an xbox.
Steam deck is mostly for my older pc games, like Homm3, half life, no mans sky, etc..
Its the western AAA market that sucks. We don't get much of the following anymore (AAA only , indies we still do):
1. Single Player FPS games.
2. Experimental games (think tokyo jungle, katamari dimacy)
3. Stealth games (metal gear, splinter cell, thief)
4. RTS games ( Warcraft, starcraft)
5. Action adventure games (legacy of kain, Heavenly Sword)
6. Psychological Horror (silent hill)
7. Cool themed non traditional setting rpgs (mass effect, Alpha protocol )
8. MMos (not that i want them but still).
9. Singleplayer/multiplayer military shooters (Socom, Battlefield, etc..... yeah modern cod and battlefield are modern fortnite type gaas shit)
10. Cool ideas for exiting franchises (think Mega man legends)
11. Historical total war
12. Castlevnaia type games
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mckmas8808
Mckmaster uses MasterCard to buy Slave drives
DaGwaphics
Member
I was under the impression that Sony is expecting to sell fewer PS5 systems this year than last year, which obviously would contribute to lower console chip sales for AMD. Is that not the case?
Xbox probably figuring in more, but going deeper into the gen without permanent price cuts will eventually lower sales for Sony also (in comparison to PS4).
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