AMD GPU sales tanking

[Murphy]

AMD prices are coming down everywhere except uk it seems. you see it daily especially us and eu, but see very little movement here. dont call the uk treasure island for no reason

Problem is people read/watch launch day reviews and launch day prices were bad, you only get one chance to make a good impression and AMD blew it.

I strongly suspect if they launched their current gen cards at the sort of prices we're seeing today they'd have seen much stronger sales due to glowing reviews.

e: If they'd launched the 7900XT at the sort of prices we're now seeing i would've bought one, as it is now i don't see much point so I'm going to hold out until the 8k series.

 

[dave28]

The whole point of a newer generation is supposed to be the same price for extra performance isn't it? Not increased price relative to performance?

all the rules have changed, for example 3080 £650, 4080 £1300 or whatever it was. Double or more in one generation anyway

 

[KompuKare]

they overpriced the gpu's, then cut prices down the line, not a good look as everyone knows price cuts on their way after launch, but the taking the mick with some prices.

Problem is people read/watch launch day reviews and launch day prices were bad, you only get one chance to make a good impression and AMD blew it.

I strongly suspect if they launched their current gen cards at the sort of prices we're seeing today they'd have seen much stronger sales due to glowing reviews.

e: If they'd launched the 7900XT at the sort of prices we're now seeing i would've bought one, as it is now i don't see much point so I'm going to hold out until the 8k series.

I've said this plenty of times, but aside from being margins obsessed - which is not necessarily the same as profit obsessed with the huge fixed costs of developing a GPU - that for some strange reason AMD seems to crave bad launch day reviews.

And having poor prices at launch seems to be the best way to guarantee those poor impressions.

 

[NZXT30]

Their CFO blamed consoles. JPR says their GPU sales are up so we have no evidence that AMD GPU sales declined.

 

[humbug]

AMD's graphics card sales just took a nosedive | Digital Trends

AMD just reported its financial results for the first few months of 2024, and its gaming business isn't doing so hot.

www.digitaltrends.com

AMD confirms Radeon GPU sales have nosedived

As part of its Q1 2024 financial report, AMD highlights that a decline in its 'Gaming' revenue is due to lower sales of its Radeon GPUs.

www.pcgamesn.com

I'll preface this by saying that I'm a 7900XT user. But am I surprised? Totally not.

Yes, AMD has to make some profit with their GPUs, but they're priced so close to their team-green alternatives that for most users, it would be better to pay the extra and get an nvidia gpu instead.
You get more VRAM with Radeon cards, but...

...Team green has better ray-tracing, DLSS is better baked compared to FSR, not to mention CUDA and NVENC
And for this gen, RTX 4k also has better (less) power draw and spikes
In general, nvidia has better resale values that negates the slightly higher up front costs

I can't see how AMD can compete without taking a massive haircut to their RRP

I don't know why NVENC matters when both have AV1 but the rest of it, yeah...

AMD aren't going to cut their RRP to the point where they are not profitable, Nvidia would like nothing more.... they would sooner pull out and leave the market to Nvidia, AMD are not going to be loosing anymore money, they are done with that, in a way they are already starting with that by only offering low to mid range GPU's next gen.

If AMD want to stay in the dGPU market they have to fix those things, with that FSR 3.1 looks promising, RT on RDNA 4 also looks very promising and they are budling an alternative to CUDA with ROCm, but if they do all these things we also have to want them at prices where AMD can turn a profit, cheaper than Nvidia, sure, but as some say 30% cheaper than Nvidia isn't going to work for them.

This is a two way thing, its not all on AMD at any cost.

Also, click bait articles..... things are not as bad as that.

 

[Grim5]

Problem is people read/watch launch day reviews and launch day prices were bad, you only get one chance to make a good impression and AMD blew it.

I strongly suspect if they launched their current gen cards at the sort of prices we're seeing today they'd have seen much stronger sales due to glowing reviews.

e: If they'd launched the 7900XT at the sort of prices we're now seeing i would've bought one, as it is now i don't see much point so I'm going to hold out until the 8k series.

Better prices but worse pert relative to Nvidia

 

[KompuKare]

Their CFO blamed consoles. JPR says their GPU sales are up so we have no evidence that AMD GPU sales declined.

And that's probably as much as they can say without revealing and preempting Sony's sales results.

AMD's opacity with console and other semi custom is well known although some things have been deduced over the years (i.e. margins aren't that low, Sony are or were a huge chunk of their sales, etc.)

 

[humbug]

Their CFO blamed consoles. JPR says their GPU sales are up so we have no evidence that AMD GPU sales declined.

Right. i don't think they have, the problem is deciphering AMD's segmentation, so far as i can tell they lump dGPU's in with consoles, so consoles take a massive nose dive and you have low effort jurnoes misunderstanding what's going on and creating click bait articles like this for PCRM normies to get worked up over.

Meanwhile AMD's gaming handheld segment explodes in revenue, oh.... now i see why consoles aren't selling.

Yeah sorry, no red flags here.

 

[NZXT30]

Right. i don't think they have, the problem is deciphering AMD's segmentation, so far as i can tell they lump dGPU's in with consoles, so consoles take a massive nose dive and you have low effort jurnoes misunderstanding what's going on and creating click bait articles like this for PCRM normies to get worked up over.

Meanwhile AMD's gaming handheld segment explodes in revenue, oh.... now i see why consoles aren't selling.

Yeah sorry, no red flags here.

We do have the numbers to put together the puzzle but most people won't go further than clickbait articles that confirm their biases.

There is major conflict of interests between AMD, Sony, Microsoft so you will not get a straight answer easily but the truth is out there.

 

[Joop]

The lack of AI performance for AMD isnt helping, I have got into Stable Diffusion and Local AI and the lack of speed and support for AMD over Nvidia is massive!

 

[humbug]

The lack of AI performance for AMD isnt helping, I have got into Stable Diffusion and Local AI and the lack of speed and support for AMD over Nvidia is massive!

I thought about playing with that but googling how to get it is one of those things that sends you round and round in an endless loop of text walls that seemingly have nothing to do with "Stable Diffusion"

 

[humbug]

Its like here it the stable diffusion website > get started with the API > Try it out > welcome to fireworks playground, here is massive wall of text about reprograming your OS.

 

[Jay85]

I don't know why NVENC matters when both have AV1 but the rest of it, yeah...

AMD aren't going to cut their RRP to the point where they are not profitable, Nvidia would like nothing more.... they would sooner pull out and leave the market to Nvidia, AMD are not going to be loosing anymore money, they are done with that, in a way they are already starting with that by only offering low to mid range GPU's next gen.

If AMD want to stay in the dGPU market they have to fix those things, with that FSR 3.1 looks promising, RT on RDNA 4 also looks very promising and they are budling an alternative to CUDA with ROCm, but if they do all these things we also have to want them at prices where AMD can turn a profit, cheaper than Nvidia, sure, but as some say 30% cheaper than Nvidia isn't going to work for them.

This is a two way thing, its not all on AMD at any cost.

Also, click bait articles..... things are not as bad as that.

They should sell off the DGPU department and have that renamed back to ATI . I would love to see an ATI comeback tbh, those were the days!

 

[humbug]

They should sell off the DGPU department and have that renamed back to ATI . I would love to see an ATI comeback tbh, those were the days!

ATI went bust trying to appease the GPU's for nothing crowd.

 

[Jay85]

ATI went bust trying to appease the GPU's for nothing crowd.

Yeah lesson learnt, time for round 2!

 

[humbug]

Yeah lesson learnt, time for round 2!

lol...

 

[eeii]

AMD have had a huge missed opportunity with laptops which sell a huge amounts. Looking at their future plans it looks like they are waking up. I work for a large system integrator and we don’t sell any AMD laptops.

 

[GoogalyMoogaly]

I don't know why NVENC matters when both have AV1 but the rest of it, yeah...

In my experience GPUs are not good for video encoding regardless of codec (well H264, H265 or AV1).

 

[Rroff]

In my experience GPUs are not good for video encoding regardless of codec (well H264, H265 or AV1).

Depends what you are doing and priority in terms of compatibility, quality (some encoders do better at different bitrates, etc.), latency, performance impact, etc. the hardware encoder on nVidia GPUs is the best option for a certain range of game streaming/recording, while you probably wouldn't want to use it for the end product for production work in many cases.

 

[jokerguv]

I say this as a 6900XT user but you could only tow a sinking ship for so long. Sooner or later you're gonna have to cut ties eventually. MSI probably got fed up with sitting on slow moving/dead stock and called it. Don't know how others are faring. By the looks of it not so good.

Think AMD might stick to an APU/NPU only option going forward because TBH thats probably the only GPU segment they seem to have a strong foothold on.

Even though they make good dGPUs the brand has struggled with the mindshare problem for far too long now, and they don't look like they'll be countering in the meantime if ever. Don't see their fortunes changing anytime soon (other than for the worst). But it would be shame to see them go though. Let's hope Intel keep sticking with their dGPUs for atleast some competition (even if notional) in the space. A completely monopolised market is in no one's interest.