AMD Reports Fourth Quarter and Annual 2019 Financial Results

[Xaled]

Consoles are extremely cheap when comlared to PCs. Even Sony and Microsoft don't win from the console themselves. They win later when people buy content.
The only reason that these 2 firms preferred AMD over Intel and Nvidia is that AMD is making it so cheap. There is no earn for AMD in console business that's why they don't want to explain console numbers to investors . Too much effort and expense with no return.

 

[kapone32]

I have seen estimates as high as $10 gross profit from each chip sold to the console manufacturers after the cost to fab the chips that would place the gross profit at around 1 billion dollars over a period of several years but that doesn't mean all of that money went into AMD's bank account. There are R&D costs to recoup on the chip design staff at AMD to pay, rent, utilities, defective chips that were returned to AMD for a refund etc.

The most telling thing of all was that Intel and Nvidia weren't even interested in the console contracts because they both liked a high profit margin and they didn't see the console contracts as worth bothering with.

It would be very interesting to know the true number, feeding the 2 biggest fish in the console pond must be worth something.

Consoles are extremely cheap when comlared to PCs. Even Sony and Microsoft don't win from the console themselves. They win later when people buy content.
The only reason that these 2 firms preferred AMD over Intel and Nvidia is that AMD is making it so cheap. There is no earn for AMD in console business that's why they don't want to explain console numbers to investors . Too much effort and expense with no return.

If you say so. Ask them that question if each of them only sold 10000 units at launch.

 

[Vya Domus]

There are R&D costs to recoup on the chip design staff at AMD to pay, rent, utilities, defective chips that were returned to AMD for a refund etc.

R&D and all of that are included in operating expenses, that's what profit is supposed to mean, it's the money you're left with after you subtract the expenses from the income. If it was estimated that they made 1 billion in profit that means it included all of that.

The most telling thing of all was that Intel and Nvidia weren't even interested

You can bet they would have done everything they could to get their hands on a contract like that. But they couldn't, AMD had offered the cheapest and easiest solution with their APUs.

Nvidia did get the Nintendo Switch with the Tegra X1 but what do you know mobile SoCs are even lower margin products. So clearly they have an interest in this but they can't deliver something competitive for MS and Sony.

 

[medi01]

Actually it is, AMD went through bad days because they focused on Consoles and APUs instead of CPUs and GPUs

AMD went through bad days, because when they had excellent products, OEMs were afraid of taking it, even if offered for free.
And if you think those days are far gone, check MSI CEOs words of silly honesty.

There are R&D costs to recoup on the chip design staff at AMD to pay, rent, utilities, defective chips that were returned to AMD for a refund etc.

AMD gets paid for development separately.

 

[Flyordie]

Hardly anyone wants AMD to die. I think you're mistaking the "sides".

These are not good figures. I don't understand why people cheer so much. AMD will open at -4%.

My statement was more along with how she took the money she had, the time she had and made the decisions that got us Ryzen. She put AMD back into a position that they have a shot at surviving the next 5-10 years.

 

[notb]

My statement was more along with how she took the money she had, the time she had and made the decisions that got us Ryzen. She put AMD back into a position that they have a shot at surviving the next 5-10 years.

As I mention from time to time: I don't understand why people give Su so much credit. She's a CEO. She makes general, big-picture decisions. Some worked, great. But someone else guided Zen development and someone else actually designed it.

Of course it's great when CEO understands products and employees tasks (something I experienced as well...).
But on the other hand: it seems like other people at AMD are kept in Su's shadow and we rarely have a chance to get to know them better.
And when we do, like during latest CES (the only AMD presentation I've seen live), they just seem a bit drab and unprepared.
Koduri, also surrounded by a cult at some point, clearly had high ambitions and was pretty good in front of a camera. And he left.

As for AMD's results...
It starts to become obvious that financially it's not all green at the Red team. Good chips are not enough. They have to pack them as good products.
So yeah... I personally believe there's a decent chance of Su being replaced this year. I know it's quite far fetched and likely totally incomprehensible for some fans.
But a good CPU is here and IMO AMD currently needs more people that understand advertising on Instagram (and OEM partnerships...).
Or they can remain a DIY desktop brand, which could be fine as well, but means most people (including me) will read a lot about AMD product, but never use them.

 

[Flyordie]

As I mention from time to time: I don't understand why people give Su so much credit. She's a CEO. She makes general, big-picture decisions. Some worked, great. But someone else guided Zen development and someone else actually designed it.

Of course it's great when CEO understands products and employees tasks (something I experienced as well...).
But on the other hand: it seems like other people at AMD are kept in Su's shadow and we rarely have a chance to get to know them better.
And when we do, like during latest CES (the only AMD presentation I've seen live), they just seem a bit drab and unprepared.
Koduri, also surrounded by a cult at some point, clearly had high ambitions and was pretty good in front of a camera. And he left.

As for AMD's results...
It starts to become obvious that financially it's not all green at the Red team. Good chips are not enough. They have to pack them as good products.
So yeah... I personally believe there's a decent chance of Su being replaced this year. I know it's quite far fetched and likely totally incomprehensible for some fans.
But a good CPU is here and IMO AMD currently needs more people that understand advertising on Instagram (and OEM partnerships...).
Or they can remain a DIY desktop brand, which could be fine as well, but means most people (including me) will read a lot about AMD product, but never use them.

I agree with you there. Koduri wanted more $$ to finish Vega. He didn't get it. So he left once it was launched. Yes, she's just the CEO but she's also a well versed engineer.

and yes, but.. thankfully.. a bunch of OEMs are finally telling Intel to pack it and buying AMD chips for laptops and pre-builts etc.. Wal-Mart just did this past November with their in house Motile brand laptops.

 

[medi01]

Koduri wanted more $$ to finish Vega. He didn't get it.

Yeah, he said drivers.
GPU companies, he said, are about drivers.
It is very very complicated to write drivers, that is why there is only a handful of GPU companies, he literally said.

I'm so glad he left.