Photo by Vjeran Pavic / The Verge

Today, we’re studying how massive AMD’s gaming enterprise is for the very first time — and the reply is $5 billion a yr. That’s how a lot the corporate earned in 2021 from the “semi-custom” chips that go into Sony’s PS5, PS4, and each trendy Microsoft Xbox, along with its discrete GPUs you’ll discover in graphics playing cards and high-end gaming laptops.

It seems to have turn out to be fairly a worthwhile enterprise, too — almost $1 billion in income in 2021 — and will exceed that this yr: in an earnings name, CEO Lisa Su says the corporate usually sees its most cash from recreation consoles within the third quarter, and it’s on monitor for “record semi-custom annual revenue in 2022.”

In 2020, AMD really misplaced $138 million on gaming… however in only one yr, working earnings rose by over a billion {dollars} to hit $934 million in 2021. Late 2021 is when Sony started turning a profit on the PlayStation 5, although Sony nonetheless has supply constraints; Microsoft typically doesn’t turn a profit on the Xbox itself, although AMD nearly definitely would as a chip provider.

This quarter, AMD’s gaming income is up 32 p.c yr over yr.

Gaming income for 2021: $5.6 billion.

That’s all based on the corporate’s Q2 2022 earnings, as you possibly can see within the slide above. As we mentioned in May, that is the primary quarter that the corporate’s damaged out gaming into its personal monetary section: beforehand, recreation console income was lumped in with embedded and information middle, and GPUs have been lumped in with CPUs.

AMD’s planning to launch its RDNA 3 GPUs later this yr; they’ll use 5nm chiplets, and AMD’s promising “more than 50 percent generational improvement in performance per watt.” While AMD says it’s seeing the slowdown in demand for gaming graphics now — PCs in general are slowing down, BTW — it expects {that a} new launch will enhance demand within the fourth quarter.

Gaming is now AMD’s second-biggest enterprise after its “client” enterprise (desktop and pocket book processors), although its information middle enterprise is at the moment blowing up, too. It’s at the moment up 83 p.c yr over yr.

Embedded now consists of Xilinx, an organization AMD completed buying in February.

Here’s how a lot AMD’s income is rising typically.

Record income quarter after quarter, now as much as $6.6 billion.

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