AMD

As PlayStation sales increased, Sony became AMD's biggest customer

Last year was a very strong year for AMD despite the fact that GPU sales started to plummet after the huge increase experienced during the coronavirus pandemic, according to reports from Kundojjala also pointed out that Sony is currently selling 60% more PS5s than Microsoft is selling Xboxes, though that's just an estimate as Redmond hasn't released Xbox sales figures in a while.

AMD CEO Lisa Su said during a shareholder meeting that she expects gaming industry revenues to decline by the end of this year. This suggests that AMD expects console demand to peak in 2023 and that sales have exceeded the company's projections for 2022.

Presumably as a result of console sales, AMD was only 11% behind Nvidia, even though the latter company saw a lot more revenue last year and sold a lot more graphics cards capable of running video games. Nvidia was also helped by the fact that one of its GPUs runs on the extremely popular Nintendo Switch, whose total sales reached 122 million units last quarter.

However, according to the newspaper's information, Sony, which had an equally strong performance, contributed significantly to AMD's good results. In its report analyzing the last quarter of 2022, the chipmaker mentions an unnamed customer from which at least a sixth of its revenues last year came. An expert who analyzes the performance of the semiconductor industry concludes that it is Sony that closed the last quarter of business with similar results. AMD supplies the chips for the PlayStation 5 (yes, the Xbox series machines as well).

The third quarter, ended December 31 of last year, was the best three months in the history of the PS5: 7.1 million units of the Sony console were sold. The company sold more than 12.8 million PS5s in the March-December period, bringing total sales to date to 38 million units. Sony expects to sell an additional 6.2 million PS5s before March 31st.

According to the aforementioned expert, Sravan Kundojjala, Sony is responsible for at least 16% of AMD's net sales in 2022, but this could reach 20% if we do not include AMD Xilinx results in the statistics. This made Sony AMD AMD's biggest customer, and the chip maker admitted that losing the Japanese giant would have a significant impact on its business results.

mundophone