Last year, Sony became AMD’s biggest customer, accounting for 16% of the company’s revenue as the company’s PlayStation 5 extended its lead over its competitors. Suravan Kundjaraa semiconductor industry analyst noted that excluding Xilinx’s results, Sony accounts for 20% of AMD’s revenue, making it perhaps the company’s largest customer in recent history.
In fact, the gaming business unit is AMD’s biggest source of revenue, showing strong sales of system-on-chips for Microsoft’s Xbox Series X|S consoles. AMD has sold chips worth around $3.776 billion to Sony for his PlayStation 5 gaming console in 2022. This accounted for his 16% of the company’s annual revenue. filing with the SEC.
Sony Confirmed (opens in new tab) At CES, it was announced that over 30 million PlayStation 5 game consoles have been sold. VG chart (opens in new tab) To date, PS5 is estimated to have sold over 31.77 million units. According to VGChartz, Microsoft’s Xbox Series X|S consoles haven’t been as successful as Sony’s system, with LTD shipping around 20.68 million units.
In fact, AMD’s gaming business unit, which sells desktop graphics cards, discrete graphics processors for notebooks, and SoCs for gaming consoles, had revenue of $6.85 billion and profit of $953 million last year. , was the company’s main source of revenue. Bearing in mind that AMD’s standalone GPU sales have been declining in recent quarters (based on data from Jon Peddie Research), console SoCs account for the majority of revenue for AMD’s gaming business unit.
“Games revenue fell 7% year-over-year to $1.6 billion. [in Q4 2022] Declining gaming graphics sales are more than offsetting higher semi-custom revenues,” AMD chief executive Lisa Su said on the company’s recent earnings call. ( Seeking Alpha). “Semi-custom SoC revenues increased year-over-year as demand for game consoles remained strong during the holiday season. decreased by
However, AMD’s revenue from PlayStation 5 and Xbox Series S|X SoCs could decline after 2023. This is because console sales typically peak in the third year, after which platform owners tend to renegotiate component prices. Therefore, AMD’s gaming revenue is expected to decline in 2023 as compared to 2022.
“Given where we are in the cycle, we expect gaming to decline year-over-year,” said Su.
Analysts and investors tend to praise AMD’s data center EPYC processors. That’s because it’s been AMD’s primary profit driver for about six years. In 2022, AMD’s data center unit earned him $6.043 billion, trailing the company’s gaming unit ($6.85 billion) and client computing group ($6.21 billion). Still, it looks like AMD’s data center business will be the company’s main source of revenue in 2023, based on softening demand for the PC and game console cycles.
