AMD’s quarterly profit shows it’s the real winner of the game console wars

Did you buy an Xbox One or a PlayStation 4? AMD doesn’t care as long as the answer is “yes.”
Kyle Orland

If you’ve bought a Wii U, an Xbox One, or a PlayStation 4 in the last three months, at least a sliver of the money you paid went to a single company: AMD. The chipmaker provides the custom chips at the heart of Microsoft’s and Sony’s new consoles and the GPU of the Wii U, and it rode holiday sales of all three consoles to a Q4 2013 profit of $89 million on revenue of $1.589 billion. This is up substantially from Q4 of 2012, in which AMD announced a $422 million loss on revenue of $1.155 billion.

AMD’s financial tables (PDF) for the quarter illustrate the extent to which the graphics division buoyed the rest of the company. The Graphical and Visual Solutions segment, which includes GPUs for laptops, desktops, and workstations as well as the game console business, made $121 million on revenue of $865 million. In Q3 it made $79 million on revenue of $671 million, and last year it made just $22 million on revenue of $326 million.

While gaming revenue was up, CPU revenue was down—the Computing Solutions segment, which includes x86 processors, APUs, chipsets, embedded processors, and microservers, lost $7 million on revenue of $722 million. The segment brought in less revenue than the $829 million it made in the year-ago quarter, but a loss of $7 million is much better than the year-ago loss of $323 million.

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via Ars Technica


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