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AMD declining R&D budget....

I remember reading that there was some kind of fallout between ms and nvidia over pricing of the gpu's after a few years (didn't come down in cost to what it was meant to or something like that), apparently one of the reasons they went amd for the 360.



Nviia didn't make much profit form the original Xbox deal by accepting small profit margins. Their future offers to Xbox had a healthier profit margin, MS went with the cheapest viable solution. AMD was definitely more desperate to get the revenue even if profit margins were non-existent.
 
Even if AMD get $100, they have to supply the chip.

Profit margins will be in the single figure dollars.

No, its in the 10's, its an APU. a single piece of silicone and its not even that big, cost to AMD is probably about $50 to $60.

Retailers sell similar chips shipped, boxed up with coolers for around $120.
 
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No, its in the 10's, its an APU. a single piece of silicone and its not even that big, cost to AMD is probably about $50 to $60.

Retailers sell similar chips shipped, boxed up with coolers for around $120.

I would love to a reference to that, I would find that kind of profit absolutely unbelievably good for AMD.

IF Tonester0011 is right at $18 profit a pop for Sony then you can bet your house that AMD has a fraction of that.



Your claim is easily disprovien because if AMD are really making $50-60 per console then they will be raking in billions, yet their finances prove that they aren't and something in the 50-200million range in profits from the consoles aligns with their finances.
 
So If I'm reading this right, some people here think that AMD, just one of many component suppliers to the consoles manufacturers are getting about a third of the retail cost that the whole console sells for, for that one component.
Can I have some of what your smoking please. :D
 
There you go ^^^^ $120

I would love to a reference to that, I would find that kind of profit absolutely unbelievably good for AMD.

IF Tonester0011 is right at $18 profit a pop for Sony then you can bet your house that AMD has a fraction of that.



Your claim is easily disprovien because if AMD are really making $50-60 per console then they will be raking in billions, yet their finances prove that they aren't and something in the 50-200million range in profits from the consoles aligns with their finances.

It is perhaps somewhat lower than i thought, but its still pretty good.

AMD's annual revenue is around $6bn, up from around $4.5bn pre Consoles.

2014 year end, Semi-Custom: Revenue $2.374bn, income $399m
 
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Again, you don't understand the difference between revenue and profit.
No one is denying that AMD generates sifnificant revenue form console sales, that isn't the issue.

AMD's company-wide gross marginal profit is currently at -29%
http://ycharts.com/companies/AMD/profit_margin

Their last quarter's revenue dropped 22% as well.

Nvidia's profit margin up at 15% right now for comparison.




Those low profit margins is exactly what is killing AMD right now.
 
Again, you don't understand the difference between revenue and profit.
No one is denying that AMD generates sifnificant revenue form console sales, that isn't the issue.

AMD's company-wide gross marginal profit is currently at -29%
http://ycharts.com/companies/AMD/profit_margin

Their last quarter's revenue dropped 22% as well.

Nvidia's profit margin up at 15% right now for comparison.




Those low profit margins is exactly what is killing AMD right now.

You need to stop having a go at me and Orangy for that matter about understanding what we are talking about.

The profits are in my figures, its $400m out of $2.4bn, i said it was lower than i initially thought.

you don't understand the difference between revenue and profit
The difference is in my figures, i just didn't spell it out because i assumed i didn't need to. And here you are having a go at me for not understanding them.
Should i dumb everything i say right down? you don't even see the contradictions in your own analysis.
 
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guessing sales volume and how viable they are in the big picture. Hard to imagine they make up much of market share or much of an impact on the big picture of things but hard to say because they probably reap tons of profit from those things with how much they charge.

Loads have bought them on here, so it would be silly to exclude a card just because of price or volume. I bought 2 of them, just to help nVidia sales :o
 
No, its in the 10's, its an APU. a single piece of silicone and its not even that big, cost to AMD is probably about $50 to $60.

Retailers sell similar chips shipped, boxed up with coolers for around $120.

No they don't!? Where is anyone selling an APU like what's in the consoles? The GPU performance on the PS4 literally wipes the floor with anything you can buy APU wise!
 
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No they don't!? Where is anyone selling an APU like what's in the consoles? The GPU performance on the PS4 literally wipes the floor with anything you can buy APU wise!

You can buy a quad core, retail packed Athlon AM1 for around £45. Very similar to the console apparently but I would bet that most of that £45 is mark up at retail and the packing. The chip probably costs bugger all.

https://www.overclockers.co.uk/showproduct.php?prodid=CP-317-AM&groupid=701&catid=1967&subcat=2060

Make that £35.99 retail boxed.
 
That's not even remotely close to what the consoles are running, except possibly in total CPU performance (But that bears like no relevance at all). The GPU in the PS4's more like a fully fledged 78XX GCN part.
Humbug made yet another ridiculous claim, end of.
 
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