AMD promises “mainstream” 4K gaming with next-gen GPUs as current-gen GPU sales tank
9070-series Radeon GPUs were announced at CES, with plans to launch in March.
AMD announced its fourth-quarter earnings yesterday, and the numbers were mostly rosy: $7.7 billion in revenue and a 51 percent profit margin, compared to $6.2 billion and 47 percent a year ago. The biggest winner was the data center division, which made $3.9 billion thanks to Epyc server processors and Instinct AI accelerators, and Ryzen CPUs are also selling well, helping the company's client segment earn $2.3 billion.
But if you were looking for a dark spot, you'd find it in the company's gaming division, which earned a relatively small $563 million, down 59 percent from a year ago. AMD's Lisa Su blamed this on both dedicated graphics card sales and sales from the company's "semi-custom" chips (that is: the ones created specifically for game consoles like the Xbox and PlayStation).
Other data sources suggest that the response from GPU buyers to AMD's Radeon RX 7000 series, launched between late 2022 and early 2024, has been lackluster. The Steam Hardware Survey, a noisy but broadly useful barometer for GPU market share, shows no RX 7000-series models in the top 50; only two of the GPUs (the 7900 XTX and 7700 XT) are used in enough gaming PCs to be mentioned on the list at all, with the others all getting lumped into the "other" category. Jon Peddie Research recently estimated that AMD was selling roughly one dedicated GPU for every seven or eight sold by Nvidia.
