AMD's gaming revenue last quarter came almost within 10 percent of Nvidia's

[Daniel Sims]

The big picture: Discussions on the competition between Nvidia and AMD usually acknowledge Team Green as the more successful of the two PC gaming graphics giants. However, the distance between them changes depending on which businesses you focus on, as neither company only sells GPUs.

Examining the Q4 2022 financials from Nvidia and AMD reveals that despite Team Green's perceived significant lead, Team Red is only 11 percent behind in total gaming revenue. Nvidia took a significantly harder hit in that sector than AMD.

Both companies recently published year-end 2022 reports showing strikingly similar fourth-quarter gaming revenue. While Team Green's income in that sector took a 46 percent year-over-year hit for $1.8 billion, Team Red's only fell seven percent to $1.6 billion.

The fiscal year totals show a more significant difference between the two companies. Interestingly, gaming sector revenue swung in opposite directions by near equal percentages. Nvidia made $9 billion in gaming in 2022, while AMD took in $6.8 billion. However, the former suffered a 27 percent decline compared to 2021, while the latter grew 21 percent.

These numbers are much closer than the picture from Steam's hardware survey, which has Team Green at 75 percent GPU market share. However, PC graphics only tell part of the story.

Nvidia counts its GeForce NOW cloud gaming service in its gaming revenues, but the real missing piece in the picture is console shipments. Team Red supplies the silicon behind Sony's PlayStation 5 and Microsoft's Xbox Series consoles, while Nvidia only provides for the Nintendo Switch.

Recently-released financials show that, while Nintendo sold more consoles over nine months in 2022 – 14.91 million to Sony's 12.8 million – the NPD Group reports that PlayStation 5 hardware sales generated more North American revenue due to its higher price.

Microsoft doesn't report exact Xbox console numbers, so it's unclear how much it contributes to AMD's bottom line. However, analysts peg the Xbox Series X and S at 17 million units life-to-date, while Sony and Nintendo have their machines at 32 million and 122 million, respectively.

A global economic slowdown affected various tech sectors throughout 2022, including PCs and PC parts, but analysts expect things to turn around in the second half of 2023. That's about when the PC GPU rivals release their latest mid-range cards, which will arguably be the most crucial members of Nvidia's GeForce RTX 4000 series and AMD's Radeon RX 7000 series.

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https://www.techspot.com/news/97726-amd-gaming-revenue-last-quarter-came-almost-within.html

 

[Lounds]

I mean AMD has significantly reduced it's prices on the RX 6000 line up while Nvidia is barely reaching MRSP on some of its 30 series line up. So it's not surprise that AMD made big gains last year.

 

[Gars]

Mac Pro isnt big segment on the market, but? Seems they r still far away with ARM on this matter? or ive missed something?

 

[paul1122]

My GPU maker took more money from me than yours did from you! My GPU maker is #1!

 

[takaozo]

Good for them. I really wish Nvidia makes only $1000+ GPU's and go down the hill giving up on this market.
Let them stay in AI and datacenters if this makes them happy.

 

[McMurdeR]

No surprise. Nvidia haven't exactly been flavour of the month in PC gaming circles.

 

[Nobina]

Maybe Nvidia is not so premium after all.

 

[winjer]

AMD does have several consoles with their GPUs. And there are also the APUs on the PC market.
But on the PC discrete GPU market, AMD's share is rather small.
AMD should have priced RDNA3 much more aggressively to gain market share. This is very important, to encourage developers to also optimize for their GPUs.

 

[Irata]

I‘d say the numbers also show who profited from mining and who lost considerable revenue due to the mining bust.

 

[yRaz]

I‘d say the numbers also show who profited from mining and who lost considerable revenue due to the mining bust.

nVidia has higher margins so keep in mind revenue =/= profit

 

[HardReset]

AMD does have several consoles with their GPUs. And there are also the APUs on the PC market.
But on the PC discrete GPU market, AMD's share is rather small.
AMD should have priced RDNA3 much more aggressively to gain market share. This is very important, to encourage developers to also optimize for their GPUs.

Why? AMD has already tried that but people still bought Nvidia. So they decided it's not worth it.

For optimizations, powerful consoles are still basically 100% AMD and most games are optimized for consoles by default. All Nvidia optimized titles are Nvidia sponsored. No-one optimizes for Nvidia for free.

 

[neeyik]

AMD does have several consoles with their GPUs. And there are also the APUs on the PC market.
But on the PC discrete GPU market, AMD's share is rather small.
AMD should have priced RDNA3 much more aggressively to gain market share. This is very important, to encourage developers to also optimize for their GPUs.

APUs come under AMD's Client sector. Gaming mostly covers discrete GPUs, custom SoCs (aka console chips), and paid services for development work. Unfortunately, while the SoCs bring in lots of income, they don't generate much actual income, as the markup on them is a lot lower than with dGPUs.

For example, in the financial year just gone, the Client sector had a revenue of 6.9 $billion for an operating income of 2.1 $billion, whereas the figures for the Gaming sector were 5.6 and 0.9 respectively.

 

[Irata]

nVidia has higher margins so keep in mind revenue =/= profit

Not disagreeing, but did you see what happened to their ‚gaming‘ segment numbers ?

 

[yRaz]

Not disagreeing, but did you see what happened to their ‚gaming‘ segment numbers ?

I only run AMD but the main reason for that is that a portion if every dollar I spend on AMD hardware goes to the open source community. They gained a boat load of market share, and good for them

 

[rsmith222]

AMD should have priced RDNA3 much more aggressively to gain market share. This is very important, to encourage developers to also optimize for their GPUs.

Only at the high end and only enough to convince would-be Nvidia buyers. Below that, that would make the console business less compelling. AMD competes against the PC gaming platform.

It also needs Nvidia to keep increasing prices at the high end to make its 'lower volume, higher margins' PC gaming strategy pay off.

 

[PEnnn]

Well, in NGreedia's defence, they lost a ton of customers.......it's hard to replace all the scalpers and the miners in a short time.

 

[Irata]

I only run AMD but the main reason for that is that a portion if every dollar I spend on AMD hardware goes to the open source community. They gained a boat load of market share, and good for them

One good thing for AMD is the higher asp - for RDNA1, the $3xx 5700 XT was the most expensive Radeon card.