In context: Last quarter’s monetary reviews confirmed sturdy performances from AMD and Sony in a yr of weak spot for the massive tech sector. Comparing the 2 reviews reveals simply how vital Sony is to the chipmaker. Some Xbox console numbers can be deduced from the comparability.
In its fourth-quarter 2022 earnings report, AMD attributed about one-sixth of its 2022 web income to an unnamed buyer, a considerable leap from 2021. A semiconductor trade analyst speculated that Sony was the client primarily based on outcomes for a similar quarter. AMD provides chips that energy Sony’s PlayStation 5 recreation console and Microsoft’s Xbox line of machines.
PlayStation 5 gross sales reached 7.1 million models within the quarter ended December 31, 2022, an all-time excessive. Sony’s mixed gross sales for the primary three quarters of fiscal 2022 (from March to December) hit 12.8 million, bringing the console’s lifetime whole to 38 million. Sony expects to promote a further 6.2 million PS5s by March 31, 2023.
Not solely will Sony account for 16% of AMD’s 2022 web income, however that determine may enhance to twenty% if AMD’s Xilinx is excluded, making the PlayStation maker AMD’s largest buyer, analyst Sravan Kundojjala mentioned. The chip firm acknowledged that shedding this one buyer would have a major influence on its enterprise.
Sony will account for 16% of AMD’s income in 2022, up from 14% in 2021. Classic AMD (previously XLNX) accounted for 20%. Semi-custom peaked in 2022 and can decline in 2023. $AMD $ sony pic.twitter.com/pwmk4j8Xem
— Sravan Kundojjala (@SKundojjala) February 28, 2023
Further evaluation from Kundojjala suggestion PS5 shipments are greater than 60% increased than Xbox. Microsoft stopped publishing Xbox gross sales figures a while in the past, selecting to give attention to subscription and digital gross sales, however everybody expects the PS5 to simply lead. Just do not know the way far.
During the earnings name, AMD CEO Lisa Su mentioned the corporate expects gaming income to say no year-over-year on the console aspect. This may point out that AMD expects console demand to peak in 2023, or that console gross sales will exceed the corporate’s expectations in 2022.
Gaming console gross sales are already a probable purpose why AMD will probably be inside 11% of Nvidia’s gaming income in This fall 2022, regardless that Nvidia’s general income is way increased and gaming graphics card gross sales are a lot increased. That mentioned, Team Green may additionally profit significantly from gaming consoles, as one in every of its GPUs powers Nintendo’s standard Switch. Nintendo offered 1 million Switch consoles final quarter, bringing the hand held’s whole lifetime to 122 million.
