One possibility:What does cost reductions equal if the savings are not passed on to the end user? If AMD are able to make their GPU's cheaper they are either pocketing the extra as profit or passing it along to their customers.
If you expect the 4090 to be £650 and they are not benefiting from chiplets, what is it you think the 7900 XT should cost?
Overall profits in the GPU division is R&S plus all the other fixed costs less total profits from sales.
Meanwhile, total profit from sales is volume * margins.
With AMD's marketshare of dGPU sales now around the 10% level, their volumes are pitiful. So they try to increase margins per sale instead.
Result? Next year AMD might be down to 5% marketshare... And increased margins can only make up for dwindling volume for so long!
