Nvidia says it didn't want this business...waht a clown company, they could't compete!
Sentiment: Strong Buy
You're an imbecile. I have the IDC report on my desk in front of me. IDC predicts that the total size of the new generation console market over 7 years will be SMALLER than the prior generation by around 2 million units. They are predicting 138 million units total for XBox One and versus 140 million for the first generation boxes.
More importantly, Read on the Q3 CC acknowledged that AMD expects volumes to fall off compared to Q3 and Q4 2013 later in the lifecycle.
Merrill Lynch also correctly pointed out that these deals are almost certainly based on volume discounting. That is, as Microsoft and Sony buy more chips, they pay less for each chip. It is gaming industry hardware supply contract standard practice.
Finally, despite far overshooting its plan to hit the "console chips being 30% of revenue by the end of Q4" target (they did so in Q3), the revenue is feeble; much lower than early models used by analysts in sizing the revenue and income opportunity consoles represent for AMD.
AMD owes $150 million to GF for chips it has no market for. AMD owes $200 million to GF next quarter as the last payment of 3/4 a billion dollars in penalties for the last time AMD couldn't sell the chips it had promised to buy from GF. The next year, AMD owes bond holders $2 billion.
Where's the money going to come from to discharge these obligations? Not consoles, clearly, nor GPUs, nor certainly not AMD CPUs or APUs. AMD got no game, suckers.
Nvidia has no solution, Tegra4 can't do the work for Xbox and PS4
Intel has no solution, I7 iGPU can't even play BF 4
APU is AMD's answer to Intel/Nvidia combo is way overkill and too expensive for game console
what next, AMD Kaveri + Mantel + GPU 290 with crossfire enable, going to release soon, CES2014. It will be the best for PC game.