AMD commented on the situation in gaming graphics The market

AMD commented on the situation in gaming graphics: “The market is a mess, but new items will help us”

Unlike NVIDIA, which was even forced to announce its second-quarter financial results ahead of schedule due to a sharp drop in demand for its gaming graphics cards, AMD has been more cautious about the situation in the consumer graphics market and expressed hopes for its fourth-quarter growth . AMD management is sticking to the general line of conduct even now, but points out that there is a mess going on in the consumer graphics market.

    Image source: AMD

Image source: AMD

Similar statements were heard from AMD senior vice president Ruth Cotter, who attended a technology conference Goldman Sachs. She began her explanation with a reminder of AMD’s recent restructuring of its financial statements. While semi-custom solutions, especially chips for game consoles, used to be part of the server business, today they are classified as a gaming business alongside discrete graphics processors. Those two segments went in different directions last quarter, according to an AMD representative. According to Ruth Kotter, the demand for Microsoft and Sony game consoles is very high at this stage of their life cycle and because of this, the overall sales growth in this area will continue.

At the same time, the company entered 2022 in the discrete graphics segment with a very strong basis of comparison in the form of 2021. In the second quarter, the market fell sharply, which has already been widely talked about by other sources. The balance between supply and demand has changed as consumer spending has declined amid macroeconomic volatility, which has impacted the situation in the discrete graphics market.

In the second half of the year, that is, in the third quarter, as Ruth Kotter pointed out, the gaming graphics card market will continue to show weak demand as there are still increased product inventories in the retail channels. But the fourth quarter should bring positive changes for AMD. Before the end of this year, the company will release a new product for gamers, and its appearance could help rectify the situation.

Despite all this, according to Ruth Kotter, the second half of the year will force the company “to deal with all sorts of twists and turns in the consumer graphics market”. New product announcements will help AMD directly, but it’s still too early to say how the situation will play out in 2023.

AMD officials also stated that the demand for the company’s products is very high in the server segment, as well as in the gaming console segment, and only in the market segments related to the consumer sector does the company face a lot of confusion and try to overcome various related problems.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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