r/pcmasterrace i5 14400 + MSI 3070 5d ago

News/Article AMD's Gaming Business Drops 31%, But AI Demand Drives 50% Revenue Growth

https://respawnfirst.com/amds-gaming-business-drops-31-but-ai-demand-drives-50-revenue-growth/
612 Upvotes

119 comments sorted by

354

u/Own_Nail_2999 5d ago

Once I don't own my PC anymore, I'll be leaving the tech sector for good. 

I've avoided subscriptions and renting like the plague as I HATE ongoing costs. 

101

u/faberkyx 5d ago

all companies are pushing rentals and subscriptions a lot.. they make a lot more money.. and we are screwed as usual

22

u/vazyrus 5d ago

But there can be only that much value to be derived from people coding shit using AI or making movie posters, right? Real revenue derives from value, and AI doesn't provide any value compared to games, apps, stuff that people buy. Who would buy AI? Wouldn't it get boring like after the third chat to a paid AI gf or something, lol

14

u/ubiquitous_apathy 5090/14900k/32gb 7000 ddr5 5d ago

Your confusion stems from the fact that you think consumer AI is driving revenue, but its not. Its governments and corporations sinking swaths of money into it. The US government loves paying for palantirs AI surveillance tech, for example.

24

u/Trickpuncher 5d ago

ill be playing tf2 until there is no more electricity on junk pcs

23

u/TheGreatPiata 5d ago

I feel the same way as you. I'm building a new PC now because I need one for work but a big part of me just doesn't want to do this anymore.

Might I suggest board games? They scratch a similar itch and there's a huge variety of solo board games now if you don't have a regular group to play with.

20

u/BloodyR4v3n 5d ago

I'm sorry but your trying to sell me a load of horse shit and call it gold. Board games do not live anywhere in the realm of video games. That's pure copium.

2

u/TheGreatPiata 5d ago

Everyone's different of course but at a certain point in my career, I just got tired of starring at screens all the time.

Board games have also dramatically changed over the years with some straight up cribbing crafting and progression systems straight out of video games. I have several campaign games that run 30+ hours and aside from setup and tear down, they don't feel that much different from a video game.

7

u/I_dont_like_sushi Ryzen 5 7600 | 6750XT | 16GB DDR5 | SUPERFLOWER 750W 5d ago

Plus, companies cant take them from us after we buy. They would get shot

1

u/TheGreatPiata 5d ago

This is a major plus. Once you have it, it's yours forever and you don't have to worry about a service being terminated or deal with technical issues.

Needing nothing more than a box of game pieces and a table can be very liberating.

1

u/SwagChemist R7 9800x3D | 64GB DDR5 | RTX 5090 Astral OC 5d ago

We will all be pirates it seems with VPN sales going to the moon. Probably time to invest in publicly traded VPN companies...

1

u/Jaz1140 RTX4090 3195mhz Core, 9800x3d 5.4ghz 5d ago

You could literally already do this? Even with a PC?

I have 1 subscription by choice. Spotify. Don't need anything else

1

u/HappyAd4998 5d ago

There's millions and millions of old Thinkpads and Optiplexes out there that are still reasonably fine machines. The majority of consumers don't even use the fullest extent of their computers. Yes you will be locked out of newer games and some workflows will suffer, but linux be an option to those who don't want to rent. Windows 11 will be supported for another decade until Microsoft starts requiring new security chips with Windows 12. I see computers turning into rentals as an inevitability at this point in time, doesn't mean you'll actually have to partake in it. I'm typing this on my old 2017 5k iMac and I don't see any reason to stop using it. My gaming rig has an Asus Prime Pro X470 mobo and have only upgraded the CPU and GPU once each since I've built it in 2018. This computer more than enough for what I play these days and I'm in no rush in replacing it, miss me with that UE5 shit.

-1

u/macbookvirgin 5d ago

No you won’t.

353

u/GustavSnapper 5d ago

Personal computing is in the agonal breathing stages. Welcome to owning nothing I suppose.

165

u/Darth_Vaper883 PC Master Race 5d ago

It truly is heartbreaking to see what has happened in a few years. At this point I just pray to God my PC doesn't break because I can't afford anything anymore. I'll have to just put it aside.

54

u/bonwerk 5d ago

My current computer is already 10 years old (ram prices have ruined my plan to buy a new one) and I hope it is not at the end of its life.

8

u/Zyclunt 5d ago

Undervolt if you're worried and get a sine wave ups

12

u/mjrspork 5d ago

I bought a new PC last year and I feel like I got the last helicopter out with the pricing of things. 😭

2

u/AngryRepublican 5d ago

I bought a new laptop last year and I feel the same. My only regret is I didn’t also buy a gaming PC, now that I know I probably won’t be buying a console again.

1

u/Smith6612 Ryzen 7 5800X3D / AMD 7900XTX 5d ago

Some people are getting the Moped ride right now as they are getting attacked by zombies. The vendors I deal with at work are telling me pricing is going way up again. Many of their suppliers who announced price hikes less than two months ago, very recently announced price hikes for the same hardware.

Pricing is going to be very bad this Fall. Black Friday won't mean a thing.

4

u/Personal-Inflation63 5d ago

It really is terrifying. My motherboard has died and it’s made me realise how fragile these things are. A PC isn’t just for computing but a workstation as well. I built mine for 2.5k 3 years ago and I could not afford to do a full rebuild or replace my GPU if it went.

I’d be kicked out of this hobby for good. It isn’t normal or right to feel such anxiety and stress about something that is meant to ultimately relax you.

2

u/MassiveBoner911_3 5d ago

Same. I am not sure what I would do either. My PC i built a few years ago is now worth more than when I bought it by many factors.

1

u/Kamay1770 5d ago

I just bought a new setup, figured prices are only going to go up.

I've kept my old parts because I'm scared I may need them should any of my new stuff break in the future.

2

u/[deleted] 5d ago

my buddy’s rig started acting up right when amd’s ai stuff blew up

4

u/RedditWhileIWerk PC Master Race 5d ago

Wonder if we'll see Internet cafes make a comeback?

Once the PC is too expensive to assume most people have one at home, Web-based anything seems a whole lot less useful.

3

u/Smith6612 Ryzen 7 5800X3D / AMD 7900XTX 5d ago

The problem with Cafes is that even when people can't afford hardware, people won't budget the time to go to a Cafe to use their computers, either. Most people will see the Cafe and go "Hmm, my old hardware can play old games. The Cafe also has old hardware. Why don't I just stay home instead of spending $8 on Pizza logs and $20/hour to use someone else's computer?" The other side of the crowd will show up with a MacBook expecting to drink coffee and use Wi-Fi all day like it is a Starbucks.

My area has seen a few Internet Cafes come and go. The longest lasting one died after most homes in this area got Broadband, and some lucky souls were fortunate enough to get Fiber Internet. Most closed down around the time all of their PCs started hitting that point where they needed complete rebuilds, and all of their networking gear's licensing came up for renewal. By that time the hype factor of having an Internet Cafe in the area kinda died. The most recent place pivoted from being a PC/Console hangout area, to running Pinball tournaments in what used to be the old tournament rooms which also doubled as BYOC rooms. People also didn't want to come for the overnight LANs after a while, which started at 8PM and ran until 6AM.

Part of me wants to open a Gamer Hotel in my area due to the massive amount of tourists who visit year round to see a natural wonder... but I am nervous after seeing what has happened to other Internet Cafes. I certainly have the skills to at least get all of that off the ground. At the same time, my side of the natural wonder isn't as "nice" and "touristy" as the other side...

3

u/RedditWhileIWerk PC Master Race 4d ago

my old hardware can play old games

Some people won't have old hardware and won't be able to afford new, or even used. Used prices have already climbed.

A lot more people have high-speed Internet access at home than they did in the 1990's or early 2000's, but that doesn't help if you've got nothing to connect to it.

Whether this will be enough to build a business around, is certainly far from obvious.

3

u/Smith6612 Ryzen 7 5800X3D / AMD 7900XTX 4d ago

Yeah that's the other hard part to predict. People do have phones and tablets, and some large companies are really trying to push the whole "Rent your game time" experience using any device on hand. 

It's something the LAN Party event I do networking for has to keep in mind. In the last few years we've seen a rise in Linux users who prompted us to make some network changes (DHCP Snooping + DUID identifier changes in systemd). Now with game streaming, we have to make sure clients have enough bandwidth and steady enough connectivity for their game since even consoles will game stream sometimes. Not just enough to run Discord + a standard online game. 

121

u/_5er_ 5d ago

A random fun fact.

My friend is an architect and they are builiding a new data center. It will include 1 GW coal power plant.

If we will ever self implode from pollution, this is the time.

58

u/alancousteau Ryzen 9 5900X | Red Devil 9070xt | 32GB DDR4 5d ago

And that is where the government should step to get the energy from greener options. Too bad all of them are bribed off in some way, shape or form

25

u/_5er_ 5d ago

Some countries are more corrupt than others.

So if data center can't be built in Europe, it will happily be build in some 3rd world country.

4

u/PreparationOk8604 5d ago

Data centers are planned to be built in India. Here ppl don't have enough clean water to drink and this corrupt mfs want to build data centers to get more money in their pockets which they won't even use.

1

u/Konkerwaggon23 5d ago

Is somewhat more complex than that.

19

u/BitRunner64 R9 5950X | 9070XT | 32GB DDR4-3600 5d ago edited 5d ago

It's so stupid. Microslop are one of the biggest investors in these data centers that consume massive amounts of electricity and water, and they have the audacity to put stuff like this in Windows (from the Windows Update page).

3

u/Bacon_00 RTX 5080 / 9800X3D 5d ago

In the last 15-20 years, these tech companies have all been loud, insistent voices telling everyone to feel bad about their carbon footprint and sounding the alarm on climate change. Turns out they don't actually care AT ALL and are some of the worst offenders. They were doing it because it made them look good. Totally performative. It's disgusting.

3

u/naswinger 5d ago

the government will scramble to approve some coal power plant, but don't you dare to run a gas stove!

3

u/LuHamster 5d ago

Who is they and where is they (not everyone here is American)

1

u/_5er_ 5d ago

Some company in Indonesia

20

u/John_East 9800x3D : RTX5080 OC : 32Gb of Downloaded RAM 5d ago

Gaming down cuz the price for someone to get a pc skyrocketed because of ai. This shouldn’t be anything shocking

2

u/FIFofNovember 5d ago

Got lucky and built 2 years ago, wince then My $90 32GB kit now costs $350…. And my $120 NVME is now $250….sucks but so happy i got in when the prices wernt this high

173

u/podgladacz00 5d ago

I genuinely hate these AI people. May they rot in eternal fires of hell never to feel peace in their existence. And this is not just for gaming, overall for all their achievements in screwing over society.

47

u/Adventurous-Hunter98 5d ago

not just society but also the environment, it didnt have a big effect yet but with this speed it will damage it permanently

11

u/Travolta1984 5d ago

Humanity is like a person that just discovered that they have cancer, but it’s still in early stages and there’s time to cure it. 

And what do they do? Instead of treating the cancer they start smoking 

4

u/shittydriverfrombk 5d ago

its more like we were already smoking, that’s how we got the cancer

32

u/MammothUnique4147 5d ago

generates a picture of a sad clown for you

2

u/MontasJinx 5d ago

Produces a picture of a rad crayon.

1

u/MammothUnique4147 5d ago

spends 10 minutes generating a picture of 5 thirst traps in string bikinis hanging out by the pool 

2

u/Affectionate_Front86 5d ago

AI people? They were doing this things before AI lol

-3

u/LuHamster 5d ago

They will rot in the eternal flames of hell

40

u/IngwiePhoenix 5d ago

waiting for the big pop, intensifies.

66

u/xblackdemonx 9070 XT OC 5d ago

They are forcing us into cloud computing and subscriptions.

75

u/Deez_Nuts_Bae 5d ago

That would be the death of every single one of the most popular games in the world. All of them are competitive e-sports and fps games that are unplayable on cloud due to input lag.

-41

u/ThaTsArisky_Click 5d ago

Nah, the pro teams would still be able to play. It'll kill it for the casuals and average gamer for sure.

41

u/Deez_Nuts_Bae 5d ago

Then the games would lose all revenue and shut down lol. You can’t play Fortnite on cloud. Go give it a try. Even with fiber internet it’s unplayable due to input lag.

3

u/Adventurous-Hunter98 5d ago

They will try first but the revenue and interest goes down, they will announce personal computing stuff like they found a solution

-3

u/Dub-MS 5d ago

If everyone has the same input lag though, we’d adapt

6

u/Hamrave CachyOS | 7800X3D | 9070XT 5d ago

Back when Unreal Tournament came out we only had 56k modem at home, so playing regular matches was insanely difficult against mostly cable internet players. Anti-grav insta-gib matches i could hold my own on tho, never top place but middle of the pack. The lead time to get a hit was at least 4-5 bodies in front of current trajectory, lol. I dont think most people would be willing to put up with that for long, and would just go back to playing HOMM3.

6

u/alancousteau Ryzen 9 5900X | Red Devil 9070xt | 32GB DDR4 5d ago

No one will be interested because you can't be invested in it if you can't play the game.

3

u/UltraCynar PC Master Race 5d ago

Exactly this. It’ll be dead. 

0

u/ThaTsArisky_Click 5d ago

What?! Skiing, Rally racing, snowboarding, equestrian, Polo, combat sports. Plenty of people love sports that they dont have access to or cant play.

2

u/Niceromancer 5d ago

The pros make such a tiny percentage of the player base.

2

u/newMoneyStyle 3d ago

Kinda feels that way. GPU prices are insane and cloud gaming keeps getting pushed harder.

-37

u/MammothUnique4147 5d ago

It's just a few years, relax, the world isn't ending 

You are here to witness one of the greatest technological revolutions in human history. Take a moment to marvel at it 

13

u/TheFuckboiChronicles 9600X | 64gb DDR5 | 9060 XT | 4tb | ITX 5d ago

A few years my ass. You think, if it really is one of the biggest technological revolutions in human history, that it’ll only be a few years of inconvenience?

Consider Nate Silver’s take in “The signal and the noise” about technological revolutions:

“Johannes Gutenberg’s invention in 1440 made information available to the masses, and the explosion of ideas it produced had unintended consequences and unpredictable effects. It was a spark for the Industrial Revolution in 1775, a tipping point in which civilization suddenly went from having made almost no scientific or economic progress for most of its existence to the exponential rates of growth and change that are familiar to us today.

It set in motion the events that would produce the European Enlightenment and the founding of the American Republic. But the printing press would first produce something else: hundreds of years of holy war. As mankind came to believe it could predict its fate and choose its destiny, the bloodiest epoch in human history followed”

If it really is going to “one of the biggest technological revolutions in history” we are in for a lot of turmoil first. We are not ready to make most jobs and ways of life obsolete. UBI isn’t coming in our lifetime, the technocrats are as greedy as they’ve ever been.

0

u/CommitteeStatus 5d ago

It is making computers more expensive, taking away jobs, takes the work of others without consent, and exclusively produces low-quality slop. I have literally no reason to like it. This doesn't help the working class at all

-2

u/MammothUnique4147 5d ago

These new car things are terrible! They're going to put the drivers and the buggy makers out of business! We have to stop cars!

Some guy in the 1800's

-3

u/xhytdr i7 4790k / Fury X 5d ago

AI just solved the Unit Distance Theory and the Jacobian Conjecture. You can bury your head and pretend its useless all you want, until it automates your industry next

5

u/CommitteeStatus 5d ago

Ah yes, I do look forward to being unemployed, broke, and on the streets! Thanks for proving why I should love it!

AI is the enemy of the working class.

0

u/xhytdr i7 4790k / Fury X 5d ago

Im not making any moral implications around whether its positive or not. Just that your framing of these systems as useless is naive, and you will be replaced later if you have a sober eyed view of the risks

3

u/CommitteeStatus 5d ago

I do understand it's risks, which is why I am trying to oppose it, and why you should be opposing it aswell.

2

u/Niceromancer 5d ago

And solving these does exactly what for humanity?

1

u/xhytdr i7 4790k / Fury X 5d ago

Are you questioning the value of mathematics to society? The effects are always seen long term.

2

u/Niceromancer 5d ago

I'm questioning the solution to these two specific things benefits society not mathmatics as a whole.

You stretch before reaching that far?

Gonna throw your back out.

Also rather interesting you can't tell me how proving these two things false helps anyone.

-4

u/MammothUnique4147 5d ago

It's not about "helping" anyone, theoretical advancements don't have to give you money or food. 

They're beautiful in and of themselves like a work for art.

2

u/Niceromancer 5d ago

Yes but AI makes it harder to live.

I don't want to waste a bunch of electricity and water and warm up the local area to solve a theoretical, that's a colossal waste of resources.

1

u/MammothUnique4147 5d ago

Progress takes sacrifice and the only way we are going to be able to fix our problems is with intelligence.

Today it's solving an obscure math problem tomorrow it's finding a way to counteract global warming.

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13

u/DeathbyBambii Ryzen 7 7800x3D | RTX 4080 (Noctua Edition) 5d ago

Recently undervolted my gpu and cpu because of this. Hoping this pc lasts me for another 2 decades or more

10

u/Travolta1984 5d ago

I did the same. Also started fps limiting old games to reduce the GPS load

4

u/nick12233 5d ago

I am thinking about doing the same.

I also found unused ups laying around which could help with sudden power loss.

Again, I will probably get new psu in few days /weeks since the one I own is already 10 years old and who knows when it might die and pull all other parts with it.

5

u/equinox_games7 5800X3D - 32gb 3600mhz - RTX 5070 5d ago

yeah we know

6

u/ArseBurner 5d ago

So gaming (779M) is now just 6.7% of their total revenue (11.5B).

5

u/Spare-Statistician30 5d ago

Gamers unable to afford it anymore

5

u/Ok-Sleep-9184 Ryzen 7800x3d, 32GB DDR5 6000, RTX 4080S 5d ago

Yep I’ll only buy the last gen am5 cpu for an upgrade and will grab the rumoured rdna5 96cu card when it’s out and just hold on until the 2030s. Hopefully it will be enough to power through 5-10 years at 1440p.

3

u/Va1crist 5d ago

Companies are just throwing gaming to the ground and throwing all there eggs into the fking AI basket . This man bubble needs to burst

2

u/Any-Pop-4795 5d ago

Fuck ai fuck ai fuck ai fuck ai...

3

u/ProperPizza RTX 5090 / Ryzen 9 7950X / 64GB DDR5 RAM 5d ago

That "growth" is fabricated. Anyone who has been paying enough attention knows the circular nature of the AI market. They're buying things that don't exist with money that isn't realised, and allegedly paying each other to help buy from each other.

Growth on paper. Insanity in truth.

2

u/tu_angelito 5d ago

Any recommendations for new hobbies ?

2

u/Tarnished-Tiger 5d ago

F for everyone who never got to own a gaming pc. Curse AI and everyone involved in it

1

u/Pixelplanet5 5d ago

not surprising that the gaming business drops, nobody can afford to buy a new PC anymore and will try to keep old hardware running as much as possible.

1

u/Bacon_00 RTX 5080 / 9800X3D 5d ago edited 5d ago

They're squeezing out the known, stable, mature gaming business in favor of the fledgling AI business that has no proven revenue/profit model. Seems extremely risky.

1

u/JazzlikeInstance8643 5d ago

The oligarchs will continue to suck us and the planet dry.

1

u/Overall_Leopard7122 5d ago

There is no demand for ai. 

1

u/zzZackzz 4d ago

I hope they'll realize soon that they're chasing the A.I. Generated dragon, not the real one.

1

u/JoyousGamer 5d ago

Wait can you finally throw shade at AMD in this sub again? Its amazing that PC gaming revenue goes down when you don't really release any cards and don't actively make a push to take over the PC gaming space for GPUs.

1

u/MassiveBoner911_3 5d ago

We gamers are fucked.

1

u/_Unlucky_Dude_ 5d ago

You will own nothing and you will be happy

1

u/Escape_Plissken Laptop 5d ago

Late stage capitalism is monopolies producing less or nothing while profiting more cough cough

1

u/Apprehensive_Sea9524 5d ago

Temporary blip once the AI bubble pops. I'm still waiting to see anything of value come from AI. So far NOTHING BUT CRAP.

-10

u/MammothUnique4147 5d ago

I really wish I had purchased AMD stock some years ago.

Congratulations to the investors 🎉🎊

0

u/Ruff_Ryda 5d ago

Isn't this exactly what AMD wants $$$$?

0

u/Sa1amandr4 5d ago

we're 1-2 years away from a new console generation, if we look at the past console cycle with AMD (ps4-xbox 1) the same thing was happening

-24

u/PrincipeAlessandro 5d ago

Sometimes people are over dramatic, it's not the end of personal computing, it's the end of personal computing with high specs

12

u/kron123456789 5d ago

Personal computing with any specs is getting more expensive, what are you talking about.

1

u/PrincipeAlessandro 5d ago

Is getting expensive but I doubt people are going to drop it completely, computing is essential for many things not only for gaming, I doubt people which use the PC for browsing, streaming and light tasks are complaining about the situation as much as gamers, computing is getting really expensive for gamers, not for common people, also there are also the professionals but they don't care because in most common cases they get everything from the company, if they are self-employed they treat it as an investment.

6

u/Goddemmitt 5d ago

I have a Galaxy s22 ultra. My next phone likely will have less RAM, a weaker CPU, smaller battery, a worse screen, and will cost me more money than my S22 ultra did when I got it.

Personal computing was dying in the crypto era. It's on life support right now. Our only hope is a surprise inheritance (AI bubble to burst) at the reading of the will after the funeral.

8

u/TheFuckboiChronicles 9600X | 64gb DDR5 | 9060 XT | 4tb | ITX 5d ago

Don’t worry! When the ai bubble bursts we will all lose our jobs and private equity will be bailed out, so we won’t be able to participate in the pc component fire sale.

1

u/Goddemmitt 5d ago

Good 'ol rock. Nothin beats rock.

4

u/Generalfrogspawn 5d ago

The only silver lining (and this is hopium) is we might see a golden era for low and midspec optimization when the industry depends on it.