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In its second-quarter earnings call, AMD expressed optimism about the console’s upcoming release, still slated for the 2020 holidays.
While many companies face a great deal of uncertainty as the world continues to grapple with the coronavirus pandemic, AMD appears confident in its upcoming processor releases to continue the rest of the year. The company had a stellar fiscal first quarter of 2020 fueled by strong performance from its mobile launch Ryzen 4000. It is now looking forward to the second half of this calendar year for Microsoft’s Xbox Series X and Sony’s PlayStation 5 to help drive the growth of the company during the holiday season.
“We expect that semi-custom revenue will increase in the second quarter and we will have a strong bearing towards the second half of the year as we increase production to support the Christmas releases of the new PlayStation 5 and Xbox Series X consoles,” said the CEO. AMD’s Lisa Su said during her company’s earnings call, noting that these consoles will be among the biggest product launches of the year.
The company stated that revenues from its console chip business were very insignificant in the quarter just ended, as partners Microsoft and Sony seek to reduce inventory before the launch of the next generation of consoles.
“We expect to see the console’s gross margins improve as the year progresses,” added Su. “Typically, what happens is that the second quarter is the first ramp for the consoles, so the margins start a little bit lower and continue to increase as the year progresses.”
Ahead of the highly anticipated Xbox Series X and PlayStation 5 releases, both Microsoft and Sony have taken a look at the performance of their consoles. Microsoft revealed that the semi-custom GPU developed with AMD on its Xbox Series X console is rated for 12 teraflops of performance, which could embarrass most gaming platforms, and Sony’s PlayStation 5 won’t be far behind. performance wise. with a GPU that is capable of 10.3 teraflops of computing power. The processors on both consoles will be based on AMD’s RDNA 2 architecture.
AMD relies on these technological victories to help mitigate the challenges created by the global pandemic. Both consoles are still expected to be available for purchase this holiday season.
“Although there are some short-term uncertainties in the demand environment, we are well positioned to navigate through this situation,” Su said. “We have a strong financial base and our product portfolio is very well positioned in the PC, gaming and data center markets.”
AMD claimed that it was able to “quickly [adopt its] global operations to navigate hotbeds of supply chain disruption and address geographic and market demand shifts caused by COVID-19. “The company did not disclose the extent of COVID-19’s impact on its supply chain. But during this last quarter, AMD saw a 73% year-over-year revenue increase driven by increased adoption of the Ryzen and Radeon processor.
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