AMD took PS5, Xbox and GPUs from a loss in 2020 to a likely billion in 2022

Today we learn for the very first time just how big AMD’s gaming business is – and the answer is $5 billion a year. That’s what the company has won in 2021 thanks to the “semi-custom” chips that go into Sony’s PS5, PS4, and all of Sony’s modern Microsoft Xboxes, in addition to its discrete GPUs that you’ll find in graphics cards and high-end gaming laptops.

It also appears to have grown into a fairly profitable business — nearly $1 billion in revenue in 2021 — and could surpass that figure this year: On an earnings call, CEO Lisa Su says the company generally pulls the weight. more money from game consoles in the third quarter. , and it’s on track for “record semi-custom annual revenue in 2022.”

In 2020, AMD actually lost $138 million on games…but in just one year, operating profit grew by more than $1 billion to $934 million in 2021. At the end of 2021, Sony started making profits on the PlayStation 5, although Sony still has supply constraints; Microsoft doesn’t usually make a profit on the Xbox itself, although AMD almost certainly does as a chip supplier.

This quarter, AMD’s gaming revenue grew 32% year-over-year.

Gaming revenue for 2021: $5.6 billion.

It’s all according to the company Q2 2022 results, as you can see in the slide above. As we mentioned in May, this is the first quarter that the company is dividing gaming into its own financial segment: previously, gaming console revenues were bundled with data centers and integrated, and GPUs were grouped with processors.

AMD plans to launch its RDNA 3 GPUs later this year; they will use 5nm chips and AMD’s promise of “more than 50% generational improvement in performance per watt”. While AMD says it’s currently seeing the slowdown in demand for gaming graphics — PCs in general are slowing down, BTW — it expects a new launch to improve demand in the fourth quarter.

Gaming is now AMD’s second largest business after its “customer” business (desktop and laptop processors), although its data center business is currently also exploding. It is currently up 83% year over year.

Embedded now includes Xilinx, a company that AMD finished acquiring in February.

Here’s how much AMD’s revenue is growing in general.

Record revenue quarter after quarter, now reaching $6.6 billion.