It's close to RX 470/6400 in terms of performance if we're talking 8700G. Slower but not by a heap. Meaning you can play 720p60 (1080p + FSR: Balanced) Cyberpunk on not so high settings with visible but not game breaking stutters.
This actually is really not bad for an iGPU but that doesn't convince. dGPUs are too cheap nowadays. You can buy a GPU for mere 250 dollars (RX 6650 XT or 7600, or a used 2080 for that matter) and get very much playable experience at 1080p and even decent framerates at 1440p without much of upscaling and lowering quality settings. To be a "shut up and take my money" thing these APUs need something more spicy than 12 CUs and something more impressive than dual channel DDR5. Now they're just enough for a niche user. A niche user that only chooses between different AMD generations since Intel produce none of that.
Well 250USD isnt nothing, for lots of people thats just too much. iGPU's are extremely useful and its good AMD finally standardised it on their chips.
As an example I could build an entire system for £200, adding a discrete GPU even at the price you quoted is doubling the build cost.
If you want cheap my GT 1030 cost me £30. Thats cheap. Sadly there is nothing in that ballpark these days which is why iGPU's are so important, and they really handy for when testing not having to install a dGPU as well.
My second rig mostly runs headless and I was using my GT 1030 on the 2600X, it would have been ridiculous to buy a £200-250 GPU for such a system. Now it runs of the iGPU on the 5600G its saving me over 20w of power as well.
So if you could play at 720p for £200, or 1080p for £400 whilst double the power cost as well, the former is very nice. Even better if the system has no gaming requirements, AMD now finally offer a iGPU on all their chips.
