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The sales of AMD’s Radeon GPUs have dropped sharply since May 5, 2024.
A Shocking Drop
AMD’s Q1 2024 financial report shows that GPU sales dropped by an amazing 48%². Radeon GPUs are part of the company’s game business, which is having a hard time.
Let the Numbers Speak
The facts are clear. Even though AMD’s Radeon GPUs are some of the best graphics cards out there, they are not selling very well⁴. The money made from gaming was 33% less than the previous quarter and 48% less than the same time last year⁹.
What Happens When Functionality Drops
It’s interesting that semi-custom income has gone down. Most game devices that aren’t PCs are made by AMD. This includes the PlayStation 5, Xbox Series X, and PC handhelds like the Asus ROG Ally and Lenovo Legion Go⁹. Since these devices are getting old, AMD is probably seeing a drop in sales‹.
What’s Next for Radeon GPUs
Part of this drop in income is due to people not wanting to buy separate Radeon graphics cards, but AMD is also losing money because console sales are slowing down³. The Xbox Series X, S, and PlayStation 5 all have special SoCs with Radeon graphics, and none of them have had great recent sales³.
Bottom Line
It is clear that Radeon³ needs to go in a different direction. AMD needs to come back like Ryzen did. It’s the only real competition that Nvidia’s GeForce GPUs have had, whether you like it or not. Intel is still getting used to Arc³. If you have to give the company credit, it does work hard on rasterization. But that’s not a strong enough point to rely on when ray tracing and performance-boosting features are becoming more and more important, and AMD is clearly behind Nvidia in this area.
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1AMD’s graphics card sales just took a nosedive
2AMD’s Q1 Earning Report Shows Shocking 48% Decline in GPU Sales
