They seem to have stopped trying to compete with Nvidia for the Ultra high-end space but they still hit hard on the mid/low/console/mini PC markets. The console market might heat up with Nvidia looking at it and trying to leverage DLSS with the new switch and I’m sure they will try to flip Sony and MS, but that seems unlikely until 2 gens from now as I’m sure they will stay with AMD for the next gen at least.
Its pretty unlikely that Nvidia will flip sony or MS.
The gross margins that nvidia would demand would amount to their costs doubling vs amd. Consoles are generally sold at a loss for much of their lifecycle, they subside the cost and make it up on game sales. Doubling their costs would just lead to larger subsidized losses and/or a large increase to console price. A large increase to console price would mean less console sales and thus less game sales. So you would likely have vastly increased costs, and likely the same or less game sales…that is not a winning decision.
I think it would be more likely they would just make their own chips. But with how low of a gross margin AMD is likely making(all the estimates ive seen are 20% or less, 20% gross margin is way lower then what is considered healthy), i just don’t see the financial incentive for them to do so.
AMD is pretty much the de-facto choice. At least until AMD either decides to abandon the console gaming market(no indication of that); or until they decide to try to extort a higher margin. I’m sure they want a higher margin, and will try to get one, but they know their hand is weak for negotiating a higher margin.
They seem to have stopped trying to compete with Nvidia for the Ultra high-end space but they still hit hard on the mid/low/console/mini PC markets. The console market might heat up with Nvidia looking at it and trying to leverage DLSS with the new switch and I’m sure they will try to flip Sony and MS, but that seems unlikely until 2 gens from now as I’m sure they will stay with AMD for the next gen at least.
Its pretty unlikely that Nvidia will flip sony or MS.
The gross margins that nvidia would demand would amount to their costs doubling vs amd. Consoles are generally sold at a loss for much of their lifecycle, they subside the cost and make it up on game sales. Doubling their costs would just lead to larger subsidized losses and/or a large increase to console price. A large increase to console price would mean less console sales and thus less game sales. So you would likely have vastly increased costs, and likely the same or less game sales…that is not a winning decision.
I think it would be more likely they would just make their own chips. But with how low of a gross margin AMD is likely making(all the estimates ive seen are 20% or less, 20% gross margin is way lower then what is considered healthy), i just don’t see the financial incentive for them to do so.
AMD is pretty much the de-facto choice. At least until AMD either decides to abandon the console gaming market(no indication of that); or until they decide to try to extort a higher margin. I’m sure they want a higher margin, and will try to get one, but they know their hand is weak for negotiating a higher margin.