COLOGNE, Germany | Tue Aug 20, 2013 2:52pm EDT
Aug 20 - Sony has surpassed 1 million preorders worldwide for its new PlayStation 4 console, the head of its SCE computer entertainment division said on Tuesday.
SCE Chief Executive Andrew House added that the console will be available from Nov. 15 in North America and will hit stores in Europe from Nov. 29.
"The response we have received is nothing short of incredible," he said at a conference on the sidelines of Gamescom, Europe's biggest videogames fair.
He added the console will be available in 32 countries worldwide during the holiday season.
That's about 100 million units short of what AMD would have booked in PCs before it quit the business. And at the small ASPs and tiny margins that AMD is getting for console chips, it might not even pay for the press release to announce it.
for the record, AMD is still struggling to be in business even after they sold over 180 million consoles worldwide for the past 8 years (over 70mil for xbox 360 + 100mil for wii + 10 mil for wii-u). this is just to show how low the margin gaming console business is. now you're happy with 1 million PS4 preorders? LOL!
Sentiment: Strong Sell
For the record, those consoles were licensing agreements that pay much lower than providing the APU. I am thrilled with the per orders. Sales will be strong.
Sentiment: Strong Buy
The work AMD does with the gaming consoles also will help it hone its technology in other gaming areas, including PCs,. The hope for AMD is that such expertise will attract more game developers to the AMD ecosystem and help the vendor take share away from Nvidia, whose discrete graphics technology dominates the PC gaming space.
"Our strategy to make AMD the de facto standard for game developers continues to gain momentum as we launch the industry's fastest desktop and mobile graphics chips and cement our position as the technology provider of choice for all three next-generation game consoles,"
"We definitely believe there is a great synergy between the game console and the overall PC gaming market," she said. "I think gaming is one of the key pillars of AMD in our graphics and APU [accelerated processing unit] strategy. So, having the game consoles on the same graphics architecture does allow synergies in the software development and the work that we do with ISVs, and we are pursuing that quite aggressively."
for the record, ps3 sold less 550,000 for the first four weeks of release, wii u sold 1.8million for the first four weeks, microsoft sold about 1million the first four weeks.
we are still 3 months away from release and we are already at those numbers, yes we are quite delighted.
One question I have is in the Xbox 360, and WII agreements, this was an ATI licensing agreement, which differs from using the actual GPUs in the console, doesn't it? It was my understanding that the Xbox One, WII U and PS 4 were not simply licensing agreements, but full GPUs, that AMD is providing, not just licensing. Maybe it's my misunderstanding, but if true, this also would result in greater revenue than just licensing. Facts would be useful when answering.
Though game consoles offer lower gross margins, a majority of the gross margin dollars from the division falls to the operating margin.
AMD claims that game consoles have comparatively lower operating expenses and thus majority of the gross margin dollars from the division falls to the operating margin. For the next few quarters, AMD expects low double-digit operating margin for this business which it believes will more than offset the impact of lower gross margin.