The PS5 is the best-selling AMD hardware, which is being celebrated in style on the console side, however, from the perspective of computers the news is rather bitter And it’s not exactly good news. Because? Keep reading and we’ll explain why.
When we buy a console, they don’t usually tell us directly what hardware it has inside, although technical specifications are given, they are not relevant to the general public. Who only has to know that the games with a certain box work for his system. AMD’s big mistake? To think that greater popularity on consoles would mean the same on PC and it is not.
PS5 is the best-selling AMD chip hardware, but…
In the last few hours, the news has appeared that currently the best-selling AMD hardware device is the PS5. Something that many sell as positive, especially due to the positivist consensus that exists regarding the SONY console. However, the rules in this market are different from those of the PC, where they have been forced to increase margins in order to be competitive due to the constant increase in development and production costs.
It is known to all, and if not, we do not emphasize, that the margins on console chips are much lower, so economically it is not good news either that PS5 is the best-selling hardware with AMD technology. In particular, we do take into account that despite the popularity of the Sony console, the company’s mental share, or mindshare, is not growing and more specifically in graphics cards. Although now with the appearance of the Ryzen 7000 and RX 7000 it does not seem that we will see such fierce competition for TSMC wafers, it is still there.
The biggest problem is that the amount of wafers that AMD has contracted with the Taiwan foundry is limited and the supply depends on the demand at all times. Although the new versions of PS5 use the 6 nm version of the console chip, we must assume that these are fewer IOD chips for the Ryzen 7000 and MCD for the RX 7000, from which they get higher margins.
Why do we see the glass half empty?
There is an explanation for all this and no, we do not have a grudge against the company led today by Lisa Su. If we focus only on its performance in desktop processors, then we see that they are side by side with Intel and have ceased to be the white brand or cheap alternative to buying a PC. The problem comes more from certain divisions, especially graphics cards and chips for laptops. Due to the fact that they do not get market share and should be a greater source of income than a console, no matter how popular it is, especially due to their business model.
One of the keys to today’s AMD is the Infinity Fabric interface, which allows for easy intercommunication of parts within a chip and release optimized chips for different customers in a very low development time. Many times from one generation to the next a chip only has a couple of changes made in a few months with such a methodology, whereas otherwise it could take years to even make a new chip.
And what is the problem? The margins on the console side and the lack of market share in laptops, both devices use processors with CPU and GPU on a single chip and despite the fact that it is one of AMD’s strengths, it is where they falter the most. Since its economic performance is lower than expected.
Where do we want to go?
The bad news is not that PS5 is the one that sells the most AMD hardware, but the fact that we are not talking about laptops, which is what would allow them to have more higher margins in order to remain competitive in the market. of PC hardware and offer better products. We care little what Lisa Su’s company sells outside of PC if we continue to have market share monopolies from its rivals. NVIDIA in graphics cards and Intel in laptop processors. Let’s not forget that when there is no rival up to the task, there is an increase in prices and technological stagnation.
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