The math proves gaming will bring AMD profits in Q 3
AMD has major contracts in place that will take AMD from a $300 million loss per quarter to be profitable in Q3.
The CEO and CFO on February 26 conference call with Morgan Stanly confirmed this.
Pay closer attention to details bashers.
AMD is about 15% of the 350 million PCs sold. Most of them are lower end PCs using the AMD 32 bit x86 or the AMD GPU. Very few use both. The game consoles use both the 64 bit x86 CPU and GPU from AMD that commands much higher prices and margins.
AMD will be in just about the same number of game consoles units as PC units. We know that most of AMD revenue comes from the PC market in 2012. Knowing that the 64 bit x86 CPU in the game consoles command a much higher price and margins than the 32 bit x86 CPU we can expect to see much higher revenue from the game consoles. 2+2=4. It all adds up.
Here is a kicker to the bashers argument. With the old Xbox 360 Microsoft had a licensing agreement and payed ATI royalties which is a ton lower in revenue for AMD than the actual 64 bit x86 CPU and GPU from AMD.
The bashers keep adding 2+2and coming up with much less than 4 for an answer.
Can the bashers come up with any other major contracts besides gaming consoles that would allow AMD to go from losing a few hundred million dollars to a PROFIT in Q3?
Please spare us you usual garbage that the CEO and CFO are lying about profits coming in Q3 or that the old game consoles we low revenue generators. We just proved that argument wrong as stated above.