Shulou(Shulou.com)11/24 Report--

CTOnews.com, March 2 (Xinhua)-- because of PS5's commercial success, Sony became AMD's largest customer last year, accounting for 16% of AMD's revenue. Excluding Xilinx's performance, Sonny accounts for 20% of AMD's revenue, which may be the largest customer in the company's recent history, according to semiconductor industry analyst Sravan Kundojjala.

In fact, the gaming business is AMD's largest source of revenue, indicating that the company's system-on-a-chip (SoC) sales for Microsoft's Xbox Series X | S game consoles are also strong. According to the company's filings with the Securities and Exchange Commission (SEC), AMD sold $3.776 billion worth of PlayStation 5 game console chips to Sony in 2022, accounting for 16 per cent of the company's annual revenue.

Sony confirmed on CES that it had sold more than 30 million PlayStation 5 consoles. VGChartz estimates that PS5 life-cycle sales have exceeded 31.77 million so far. Microsoft's Xbox Series X | S console is far less successful than Sony's system, shipping about 20.68 million units in its life cycle, according to VGChartz.

In fact, AMD's gaming business division, which provides separate graphics cards and SoC-- for desktop graphics cards and laptops as well as game consoles, generated $6.805 billion in revenue and $953 million in profits last year, and became the company's main source of revenue. Considering the decline in unit sales of AMD's independent GPU in recent quarters (according to Jon Peddie Research), console SoC accounts for the vast majority of revenue from AMD's gaming business.

AMD CEO Lisa Su said on the company's recent earnings call, "as the decline in game graphics card sales outpaced the growth in semi-custom revenue, game revenue fell 7% year-on-year to $1.6 billion (in the fourth quarter of 2022). During the holiday season, demand for game consoles remained strong, with revenue from semi-custom SoC growing year-on-year. As we further reduce the inventory of desktop GPU downstream channels, game graphics card revenue declined compared with the same period last year. "

But AMD's revenue from PlayStation 5 and Xbox Series S | X SoC is likely to decline in 2023 and beyond, as console sales usually peak in the third year, and platform owners tend to renegotiate component pricing after that. As a result, AMD's game revenue will decline in 2023 compared with 2022.

"given the cycle we are in, we expect the game business to decline compared with the same period last year," Su said. "

AMD's data center division generated $6.043 billion in revenue in 2022, ranking third behind the company's gaming division ($6.805 billion) and customer computing group ($6.201 billion). However, based on the slowdown in demand for PC and game consoles, it looks like AMD's data center business will become the company's main source of revenue in 2023.

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