I don't want to hurt anyone's feelings. I know I would be beaten for my rubbish layman's opinion, and I definitely shouldn't respond to the rumour thread, but...
AMD is their own worst enemy. They have chosen this path they are now moving. This is not any news. They were always sluggish and leaving the many deeds and areas unfinished, when they obviously could do otherwise. There were better investments, but AMD knew about AI boom beforehand, and they bought Xilinx exactly for this very reason. They could heavily invest in software departments, and have the drivers improvements, no-worse degree than intel did in less than a year. But they didn't. If AMD doesn't want their stuff to be purchased, whose fault is this? And at this pace, one is known for sure, that AMD doesn't care about regular consumers.
Surely there are many talented engineers working at AMD, and making brilliant devices and stuff. But all these achievements are moot, if heads of the AMD defining the future of the products they do.
It doesn't matter if the product is good, if it doesn't have good and developed ecosystem, and support. I don't say AMD products are bad. Quite the reverse, but the support and PR is lacking. They should do more. Thus it requires the investments, and why do that, if the enterprise market has more money, and they don't whine at reddits and forums about driver bugs, or about lack of fake frames.
Cutting production of high end dGPUs is not a very good idea, considering the only reasonable iGPU are yet non-existent. It could be understandable, if AMD flooded the market with APUs and laptop iGPUs of RX6600 level. But this is not the case. And I sincerely doubt it will ever be. There surely will be better iGPUs, but their quantity will be scarce. And even then, there are people requiring a more performant GPUs.
As other people wrote before, AMD is interested only in highest as possible margins. And that's AI. So unless there will be some powerful dedicated ASIC will appear, the GPU allocation will be moved to enterprise, and nobody at consumer level will be able do anything about this.
Eventually all GPUs will allocate to AI and datacenters only, and regular consumers are already being pushed to the subscription, meaning in the end people will get only some weak tablets/laptops/portable PCs to look at the screen, while the nVidia and AMD GPGPUs will generate some fake frames with remote access/streaming.
At the end of the day, the whole Ryzen and Radeon thing is just bigger sandbox and by-products of EPYC and MI, and gives AMD big amount free beta-testers to troubleshoot the enterprise R&D for shorter periods. It may seem be unrelated, but Ryzen is still heavily cut EPYC. The features set is way lesser, but the core architecture is the same. And the gaming Radeon is just crumbs compared to GPGP profits.
