AMD unveils revenues made on PS5, Xbox Series X | S and GPU with the gaming division

AMD unveils revenues made on PS5, Xbox Series X | S and GPU with the gaming division

AMD unveils revenues made on PS5

AMD has now begun reporting revenues from what is considered the company's Gaming division, which includes the production and sale of custom chips for PS5 and Xbox Series X | S, as well as discrete PC GPUs dedicated to gaming. >
Well, this sector reports revenues of 5.6 billion dollars in 2021, with an operating profit of almost 1 billion dollars for the past year.

AMD: the financial results of the company now show the numbers of the Gaming sector It is the first time that the company communicates precisely the data concerning the production of GPUs for PCs and system on chips for consoles, since before usually presented the results in an overall manner, together with the CPU sector.

It seems, however, that the gaming sector has grown sharply recently, considering that net revenues have gone from 2.7 billion in 2020 to 5 , 6 billion in 2021, probably with the reduction of production costs and a general increase in distribution, once the new generation of consoles is engaged.

Operating revenue also went from a loss of 138 million to 'current $ 934 million in surplus, demonstrating a clearly positive trend, so much so that AMD claims to be in the running for "record revenue in the semi-custom sector in 2022", a segment that specifically includes console, since both PS5 and Xbox Series X | S are equipped with dedicated SoCs customized according to the needs expressed by Sony and Microsoft.

In the meantime, we are waiting for the RDNA 3 GPUs that could arrive in October according to some rumors, still without confirmation.

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Sony lowers forecast for PS5 gaming sales in 2022

At the end of its fiscal year in May, Sony was fairly bullish on gaming sales, predicting sales of 18 million PlayStation 5s for 2022 after selling 11.5 million in 2021. The company also expected a 'significant' revenue increase in its gaming division over 2021 due to a boost across 'all categories.'

In its latest earnings drop, however, the company has revised its profit forecast down by 16 percent from 305 billion yen ($2.3 billion) in May to 255 billion yen ($1.9 billion), 'due to an expected decrease in sales of first party titles,' it wrote. The company also chalked up the drop in revenue to higher expenses due to its acquisition of Bungie Studios closing earlier than expected.

Sony didn't say anything about its PS5 console forecast, but it sold 2.4 million units this quarter compared to 2.3 million in the same quarter last year (21.7 million units to date). That means it must sell over 5 million units on average for the next three quarters to meet its May forecast — something it has never done before. In May, however, Sony said that it will finally be able to ramp up production to meet PS5 demand as supply chain issues ease — though as it stands now, the consoles are still in short supply.

On the software side, things also went south as Sony sold just 47.1 million titles, including 6.4 million first party games, compared to 63.6 million titles and 10.5 million first-party games in the same quarter of 2021. On top of that, PlayStation Plus users dropped slightly from Q4 (47.3 million instead of 47.4 million), and monthly active users also dropped from 106 to 102 million. Sony introduced the new higher-priced PS Plus Extra and Premium tiers in June, but it has yet to reveal the impact of those — hopefully, we'll learn more next quarter.

Looking ahead, Sony has a few major titles on the horizon that could perk up software sales, including God of War Ragnarok coming November 9th, and The Last of Us Part I remake arriving on September 2nd. On the hardware side, the PSVR 2 has been revealed but isn't expected to arrive until next year.

The next quarter will be a lot more interesting for Sony's gaming division, as PS5 sales will show if it's been able to ramp up production. Game sales will also be notable, as the steep drop this quarter bodes ominously for the industry as a whole.

Update 7/29/2022 10:34 AM ET: The post has been updated with information that Sony has sold 21.7 million PS5s to date, not 21.4 million.