Amd promises mainstream 4k gaming with next-gen gpus as current-gen gpu sales tank

AMD‘s recent fourth-quarter earnings showed significant growth, boasting $7.7 billion in revenue and a profit margin of 51%. This was a leap from the previous year’s $6.2 billion in revenue and a 47% profit margin. The gains were primarily attributed to AMD’s data center division, which generated $3.9 billion, thanks to the success of its Epyc server processors and Instinct AI accelerators. Additionally, Ryzen CPUs contributed another $2.3 billion to AMD’s client segment, highlighting a strong overall performance. However, AMD’s gaming division, which includes graphics card sales, took a hit. With only $563 million in revenue, gaming sales plummeted by a staggering 59% compared to the previous year. Lisa Su, AMD’s CEO, attributed the decline to sluggish sales of dedicated graphics cards, in addition to semi-custom chip performance— those designed specifically for gaming consoles like Xbox and PlayStation.

The dismal performance follows the recent launch of AMD’s Radeon RX 7000 series, which has seemingly failed to capture the attention of GPU buyers. According to the Steam Hardware Survey, a widely recognized indicator of GPU market share, none of the RX 7000 series models made it into the top 50. Only two models, the 7900 XTX and the 7700 XT, made a minimal appearance, indicating a lack of enthusiasm surrounding these products. Jon Peddie Research’s estimates present a daunting picture for AMD, suggesting they sold one dedicated GPU for every seven or eight sold by Nvidia, emphasizing the stark competition.

Despite these setbacks, there’s a glimmer of hope on the horizon. AMD’s new Radeon RX 9000 series, set to launch in early March as confirmed by Su during the earnings call, looks to reinvigorate the gaming segment. The RX 9070 and 9070 XT are targeted towards the mainstream graphics card market and are depicted as bringing “high-quality gaming to mainstream players.” This promises to excite gamers looking for value-oriented 4K gaming solutions.

However, the term “mainstream” can mean different things. AMD’s CES presentation aligns the new series alongside Nvidia’s RTX 4070 Ti and 4070 Super— both priced significantly higher than consoles. If the new Radeon cards can leverage advanced technologies such as AMD’s Fidelity Super Resolution (FSR), they might reach playable frame rates at higher resolutions without requiring consumers to invest heavily.

Nvidia has launched its 50-series graphics cards, but so far, they lack major advancements over the previous generation. The GeForce RTX 5070, priced at $549, has less CUDA core power than last year’s RTX 4070 Super, potentially leaving an opening for AMD in the market. The RX 7000 series had a competitive edge in pricing compared to Nvidia’s offerings but failed to overcome Nvidia’s exclusive features—like DLSS upscaling and superior performance in ray-tracing-heavy games.

If the Radeon RX 9000 series can effectively address the shortcomings of its predecessors, it might regain the market share that AMD desperately seeks. With a new 4 nm manufacturing process promising enhanced power efficiency and next-gen ray-tracing accelerators, the RX 9000 cards could stand out in terms of quality and value. The upcoming launch in March could signify a turning point where AMD can finally challenge Nvidia’s stranglehold on the graphics card market.

As anticipation builds surrounding the new series, the gaming community watches closely. Will AMD manage to disrupt Nvidia’s dominance with this new lineup? Only time will tell. One thing is certain—AMD’s confidence in the RX 9000 series, combined with Nvidia’s tepid advancements, presents a unique opportunity for potential market shifts in the coming months. The stakes are high for both companies, but AMD’s strategy could carve a new path in the competitive GPU landscape. The pivotal moment is just around the corner as AMD prepares for what could be a transformative launch for gamers worldwide.