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Advanced Micro Devices, Inc. Message Board

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  • rorycantread rorycantread Feb 1, 2013 10:33 AM Flag

    (((AMD lands the new Wii, Xbox & PS4 and will add $250 million in new revenue per quarter)))

    It's fun to play make believe sometimes. That's exactly what you're doing here. The really sad thing (in a pitiful, pathetic sense) is that even your lies are insufficient to explain how AMD might stop the revenue bleed. You see, AMD's revenues have declined over 500 million per quarter since this time a year ago. Even if AMD were to be able to pull in $250 million a quarter on the console business, that would still leave AMD in a deep hole, and would not stem the further erosion of revenues in laptops, PCs and servers. Apple has KILLED AMD in the low end laptop space with iPad. Intel has KILLED AMD in mid range and high end consumer PCs and laptops, all enterprise PCs and laptops and in servers. NVDA has KILLED AMD in discreet graphics.

    So you see, trading high margin segments to competitors in exchange for less than half as much revenue (and much, much thinner margins) in an extremely low ASP segment like consoles isn't a recipe for salvation. Instead it's a sure fire recipe for extinction. It would be like GM one day saying "You know, Ford is kicking our behinds in full sized pickups. We've decided to surrender that market to Ford and instead concentrate on our rebranded Korean-made subcompact business. Sure, trucks brought in 80% of our revenues and 90% of our profits, but we're losing that war. We think our total addressable market for cheap subcompacts should provide 12% of the revenues we'll abandon by dropping trucks."

    It's vapid and idiotic. These are mere bandaid strategies when AMD's problem is that it has been decapitated.

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