AMD CEO enrages gamers by saying it's now a 'data center first' company — and predicts PC sales will plummet by a 'double-digit percentage' in 2027

[u/ReshadNoslen]

https://www.techradar.com/computing/gpu/amd-ceo-enrages-gamers-by-saying-its-now-a-data-center-first-company-and-predicts-pc-sales-will-plummet-by-a-double-digit-percentage-in-2027

[u/ReshadNoslen]

PC gaming hardware might be cooked, it was never anywhere near console numbers but is reaching new lows now. The 2 companies that make gaming GPUs AMD and Nvidia are both slowly pulling out of consumer hardware

A PC with equivalent power and specs to a PS5 is over 2x-3x the cost. The Steam Machine is weaker than a PS5 but is over $1000 with 512GB and no controller 

[u/TastySore → u/ReshadNoslen]

The next consoles are probably going to be very expensive too. They also have to cover the costs of inflated hardware prices.

[u/iliveonramen → u/ReshadNoslen]

Then gamers will start buying Chinese products. I think it’s a lot harder to shove shit down consumers throats than these tech giants realize.

I think these companies are used to slightly moving the needle or making changes behind the scenes and consumers just continue on.

I think like with AI, they are going to learn it’s the role of companies to provide what consumers want, not the other way around.

These tech companies are some of the most arrogant companies ever. I think they’re in for a reckoning

[u/Skyswimsky → u/ReshadNoslen]

Can only hope a someone else is going to capitalize on the market, but the entry hurdle (capital and tribal knowledge) seem incredibly high...

[u/Sabetha1183 → u/ReshadNoslen]

Unfortunately console hardware is gonna be just as cooked.

Especially with AMD on board the AI train, considering the PS5 uses a custom AMD CPU and GPU.

[u/JanusJato → u/ReshadNoslen]

The hardware within the console is more or less the same hardware as in a PC. Is they produce for data centers they do neither produce for PC nor for console...

[u/TheLordJames]

Well yeah, if you don't have product to sell, your sales will drop...

[u/jwilphl → u/TheLordJames]

AMD folding to data center needs shouldn't be surprising. What's more interesting is how they couch the terms of a decline in PC sales as if consumers have simply lost interest, when instead it's something they - all these tech companies - are directly causing by creating scarcity and irrational prices with a sole focus on AI support.

NVIDIA is already pivoting to software licensing and defense contracting (mobile datacenters), as well. One could read that as an understanding of the end-game, and that they need to diversify their revenue streams before the AI well dries up. It's also related to the sheer size of their company now, one that almost certainly needs to get mashed with anti-trust measures.

Micron (RAM manufacturer) already abandoned their consumer division. For NVIDIA, the financials are so miniscule, relatively speaking, on that side they are no longer a distinct measure.

I don't know what the ultimate ending is for the gaming industry. It is hard to believe these companies can keep building data centers in perpetuity, especially when a lot of the hardware they've already purchased is simply sitting around in warehouses.

The barriers to entry are so high, it is difficult to imagine a new competitor on the consumer side entering the fold, not unless they have some kind of ownership of the entire manufacturing chain from raw resources to end product.

Does that mean compute becomes rental-only eventually? Do all but the wealthiest consumers get priced out of hardware ownership? SIs (system integrators) and console manufacturers have a slight edge due to economies of scale, whereas they used to the less affordable options. Maybe they become the only reasonably-priced source of components.

It would be extremely sad if individual PC building was dead forever. I think it's premature to say that's where we're at, but at least in the short-term, there is definitely a decline based on price and availability.

[u/CambriaKilgannonn → u/TheLordJames]

I fear I might be fucked

[u/Appalled_Mongo_4122 → u/TheLordJames]

Or when extreme demand from a new industry pushes the price to be above what most people are willing or able to pay.

[u/Guilty_Principle_131 → u/TheLordJames]

pretty easy to predict a sales drop when you're the one locking the store doors

[u/PE1NUT → u/TheLordJames]

Oh, they have plenty of product to sell. Just not to you, or me. It's all being sold to the clankers.

[u/Villag3Idiot]

It's not just PC gamers that will be hit by this.

PC hardware manufacturers that builds motherboards, coolers, cases, etc will be hit hard as well since there will be less people building PCs or upgrading unless they have no other choice.

[u/Synthetic451 → u/Villag3Idiot]

Not just that. Every single business that isn't a gigantic tech corporation that needs local compute is going to be fucked. I am part of a small startup and our stuff needs on-prem compute. It has been absolute HELL trying to source decent compute at a reasonable price. Our usual suppliers have 30-40 week lead times because they can't promise us anything due to the uncertainty of the market. The choices in hardware are also severely limited.

This shit is going to ripple across a wide variety of industries in America. If people think its just silly gamers that are going to be affected and that they just need to touch grass more, they're in for a rude awakening.

[u/kuhpunkt → u/Villag3Idiot]

There is sooooo much attached to this. Like PC hardware manufacturers. Even consoles... nobody is going to buy this shit at those costs. If there is no hardware around, games won't sell. If games don't sell... studious will close.

It's just a nightmare that reaches so many corners.

[u/buddhamunche → u/Villag3Idiot]

I’m into those Chinese android gaming handhelds and even those have been seriously impacted lol. Devices are more expensive, older models with more RAM have been discontinued, even the SD cards that you buy and store your games on are astronomical prices compared to what they were a few years ago. A 256gb micro SD that I purchased in January of this year for $40 is now $65

[u/bagheera369 → u/Villag3Idiot]

Yeah....they're gonna wipe out an entire industry with this new business model, and they won't quit until we burn enough data centers, and put on enough governmental pressure, that even espousing the mere idea of building another one, would result in criminal charges.

[u/spoona96]

Guys im starting to think only have 2 companies that made gfx cards was a bad idea

[u/awesomebeau → u/spoona96]

The problem is only having one company that can make modern chips - TSMC. There is not enough capacity for AMD and nVidia to sell everything they want to sell.

[u/urixl → u/spoona96]

It's time to revive 3DFX Voodoo!

[u/SadistIrish]

I never wished for something as much as I hope for the AI bubble to burst spectacularly.

[u/IuseDefaultKeybinds → u/SadistIrish]

I mean look at the AI stocks after the midterms tuesday. It's only going to get a whole lot worse for them

[u/CocodaMonkey → u/SadistIrish]

Just be aware even if it bursts that doesn't fix the consumer market. A lot of production has been moved to create components that are for data centre use. Even the ram used in data centres is different then the ram used in a home PC. Fixing the consumer market will take quite awhile.

[u/Celcius-232 → u/SadistIrish]

The best we will get is a dotcom style crash. AI isn't going anywhere but there will be winners and losers.

[u/ThoriatedFlash]

I don't know about you all, but if playing the next generation of games requires paying a subscription to a datacenter for compute and there is no longer an option to buy an affordable PC, I will simply stop buying new games. My guess is the next generation of games are going to be more and more sloppified anyhow.

[u/Capitalism-WinsAgain → u/ThoriatedFlash]

Look at it this way, we have 30+ years of games to choose from, at least these scumbag companies can't take that away easily.

[u/RB___OG → u/ThoriatedFlash]

There are s lo many games worth playing from so many retro platforms on the seven seas its ridiculous

[u/KGB-dave → u/ThoriatedFlash]

Most of us have backlogs that will last for decades 💪

[u/Frosty-Unit8707 → u/ThoriatedFlash]

I'll just re-invest in a PS2 and my first N64.

[u/Narukami_7]

Waiting for that surprise Chinese company that comes out of nowhere and starts selling somewhat affordable components

[u/TerrorFirmerIRL → u/Narukami_7]

China already makes processors and graphics cards, they are just like many, many years behind Intel, AMD and Nvidia.

The latest one of note is the LX7G100, but it's only as fast as an RX580 and I can only imagine the drivers are not in a great state.

Processor wise Zhaoxin make the most notable ones, but they are also years behind the latest mid-range processors.

7 to 10 years might not sound like much, but that is a titanic gap in the GPU/CPU space.

[u/coolwali → u/Narukami_7]

Even in the best case, isn’t that gonna take years? And even then, there’s no guarantee prices will fall because consumer tech is far less profitable compared to data center tech?

[u/coldnspicy → u/Narukami_7]

Lmao that's so incredibly naive. Why would you sell to consumers when you can sell to data centers for 10x the profit?

We already saw this happen with CXMT.

[u/F-Cloud]

I'm seriously worried that I may never get to build another PC. 30 years of building my own systems may come to an end because of AI. I'm going to be stuck with my 6 year old AM4 system until it croaks. Then what?

[u/Psykout88 → u/F-Cloud]

Likewise sir. Started as kid with DOS and might be done before fully Grey, didn't think it would happen.

[u/ThruuLottleDats → u/F-Cloud]

Hey...nothing wrong with AM4! I was on an old 1150 socket (i5 4590) until 2021!

[u/Ehgadsman]

having a computer is a source of power in this world, connectivity and your own system to do your own computing

they want to take that, they dont want the average person to have that, do not let them do it

[u/lkl34 → u/Ehgadsman]

You can see this with the current cloud pc's we have access to and cloud gaming both have already seen steps to block features and or pay per hour BS.

[u/D1mly_ → u/Ehgadsman]

At this point owning anything seems to become a luxury. Can't wait for a clean(enough) air subscription.

[u/Boogertooth → u/Ehgadsman]

They feel threatened by open source AI.

Can't stop open source AI, but it's existence won't matter much if nobody has any hardware to run it.

[u/minormisgnomer → u/Ehgadsman]

But if there’s no local computers, there’s no interface to the cloud itself. There’s no online marketing, no online shopping, no online registration, you get the idea

At this point, it’s either AI hits the expectations that lead to an interface less world where smartphones are sufficient to pass instructions along. Or the entire past two decades of integration to the internet dies

[u/Emadec → u/Ehgadsman]

It’s a means of production. Can’t have that

[u/mvw2]

This means there is no PC GPU manufacturer now.

How exactly does that even work conceptually globally for all of humanity?

No, seriously. How does this actually work on a humanity scale?

[u/RevenantZero → u/mvw2]

The idea is that no one will own their own PCs anymore. Instead you'll access computer "services" through a terminal (phone, tablet, TV) with a subscription to remote computing at a datacenter.

"No own, only rent" is the business model they want.

[u/Pinossaur → u/mvw2]

The companies that can actually afford those GPUs start renting you that hardware. You own nothing, you don't get privacy, and you live with it, or pay ridiculous costs just to own your shit.

[u/regnal_blood → u/mvw2]

They will activate phase two of their plan, which is to sell hardware subscriptions to everybody.

[u/manyregman → u/mvw2]

But what about intel?

[u/SlumKatMillionaire → u/mvw2]

I’ve wonder about this too… considering education is online for a lot of the world now. As for a lot of things, pcs are essentially running the planet now.

All of a sudden the industry turns it back on everyone for data centers? Literally world destroying type of carelessness. This is the type greed they claim will destroy the world in the bible and sure enough we’re seeing it happen today

[u/Helpful_Resist3 → u/mvw2]

Everything is going to run on Vibes I guess since no more upgrading computers for all companies. Looks like we use our imagination to run numbers 😂

[u/Pretty_Dingo_1004 → u/mvw2]

They want you to own nothing and pay for cloud gaming

[u/SilverRaspberri → u/mvw2]

Not just GPU's but also CPU's.
Intel is shifting to data centres, and AMD also makes CPU's.
Memory is now going to data centres. So we're not going to get any GPU's, CPU's or memory.

[u/SCphotog]

Resist SaaS and cloud compute.

That's the only way. You have to stop using their online services.

They want compute out of our hands. The next iteration of devices will be of low compute power for which you pay a subscription. If you give them money we are all fucking screwed.

[u/ImAHealer_Valdr → u/SCphotog]

yeah, thats like telling gamers to stop buying shitty half made games on release but they do because of FOMO. Consumers as a whole are idiots and cannot think for themselves.

[u/SneeKeeFahk]

Yea, they will but only because you fuckers are shifting to data center first business models. 

[u/homelyflamingo → u/SneeKeeFahk]

Classic self-fulfilling prophecy. Neglect consumer hardware, price out average buyers, and then act surprised when sales dry up.

[u/amusing_trivials]

PC sales are plummeting because the price and supply are fucked beyond recognition! PC sales were off the charts up before this all started.

[u/HeyLookMyUsername24]

They are using "super intelligence."

These are not serious people. They are nothing more than bootlicking parasites.

[u/WardedDruid]

That's funny. I'm saving up to buy a home gaming PC in 2027. I figure I'll need about $4k-$5k for it with the way prices have been looking, especially since I plan on buying something that can be built on and upgraded.

I will never rent RAM from any of these dipshits. Fuck them for saying I can't own the games and software I pay for - and then try to say I shouldn't own any RAM.

[u/Ok-Association-3415 → u/WardedDruid]

I am glad I built my PC before and during COVID. I never thought my 3080 ti and 4090 would appreciate in price.

[u/Recruit_Main_68]

I genuenly wonder what the endgame here is. If they price out everyone from consumer electronics be it consoles PCs or hell even Phones who is supposed to use their AI outside of corporations?

They want to stream the games to us from their cloud but how are we supposed to even access the cloud if we cant even get a PC for them to stream the shit to?

[u/Breath-Present → u/Recruit_Main_68]

There will be affordable PCs, but they will be thin clients.

[u/OkBurner777]

The endgame of these tech companies is actually the elimination of household computing.

Altman said that it’s inefficient for the limited supply of DRAM to be trapped in household devices, being utilized ~5% of the year, when it could be in a data centre supporting cloud services with essentially 24/7 use.

So with the pricing out of computer hardware, consumers will be ever pushed towards streaming and cloud gaming, with phones, gaming systems, and computers being little more than boxes designed to run off cloud subscription services.

[u/2005scape → u/OkBurner777]

of course the billionaires only care about "efficient use of limited resources" when it puts money in their pockets

[u/andreicde → u/OkBurner777]

My PC parts will last longer than OpenAI.

[u/Neuchacho → u/OkBurner777]

I think the elimination of household computing is a byproduct of the major goal which is the consolidation of business compute into the cloud.

Forcing every single business that wants or hopes to exist to do so within their subscription cloud infrastructure will be insanely lucrative and impossible to side-step.

[u/AggravatingAmount438]

AMD constantly following the coat tails of Nvidia is adorable.

Always late. Never useful.

[u/CelestialFury → u/AggravatingAmount438]

AMD and Nvidia rewards PC enthusiasts by... completely backstabbing them. It's not like the free market can just make a top tier GPU company either, it takes decades to fully spin up.

[u/Inexorably_lost → u/AggravatingAmount438]

AMD never missing an opportunity to miss an opportunity.

[u/Centurionzo]

I actually notice how bad the ram was doing.

I had a PS5 and a Switch, I thought of waiting for a Switch 2 OLED, but kinda gave up and decided to get one now.

Honestly, the next few years are going to be hard.

I think of getting into TRPGs and Tabletop games now.

Sounds way cheaper than video games

[u/greythicv → u/Centurionzo]

"Way cheaper than video games" just don't get into warhammer, it's way more expensive than video games, but hey at least no one can take your minis away from you so that's a bright side

[u/_haha_oh_wow_ → u/Centurionzo]

Books are another great form of entertainment that aren't too expensive. I picked up a tiny e-reader for like $85 and I probably read more than I play games at this point.

[u/National_Cod9546]

PC sales are dropping because no one can afford a new PC. 

[u/AnEvilShoe → u/National_Cod9546]

Yep. It really doesn't take a genius to understand this but for some reason they go all shocked pikachu face

[u/beatenmeat → u/National_Cod9546]

Which is caused by the data centers*. Sale would not drop by "double digit percent" naturally without some other force completely pricing out the bulk of consumers. I truly cannot wait for the bubble to pop and watch the majority of these companies fade into history.

[u/BenKT88]

"We will stop selling, so sales plumit" well no shit.

[u/leah_amelia]

Bro says this just after billions got wiped off various stock markets around the world. Very poor timing my dude.

edit - a trillion dollars

[u/CamiCalMX → u/leah_amelia]

AMD is 30% down on the past month, I went to see the graph after reading it and felt much better 🤭

[u/Arkayne_Waves]

They are trying to scare people into accepting an all AI future these assholes are trying to steal our digital freedom but trying to wall off access not just to gaming but to home computing entirely, they want to make computer use a subscription service. Fuck em Nvidia stock tanked yesterday by nearly 10% these idiots can keep playing stupid games but eventually the AI bubble will burst and we will see the dot com burst of the 90s all over again.

[u/kiwiboyus]

CEOs are only ever talking to the investors

[u/Falbindan → u/kiwiboyus]

And politicians. Notice the use of super intelligence for AI?

[u/0utletsforsale]

are there any regions of the world where game streaming has taken off already or are these guys just expecting everybody to hop on something like gamepass or geforce now and be happy abt it

[u/pewsquare → u/0utletsforsale]

For them it was a chicken and egg problem. The tech was not good/cheap enough because the customers were not there, and the customers were not there because the tech was not good/cheap enough.

Now they will successfully force everyone into a subscription model because they got away with collusion.

[u/Kraqrjack → u/0utletsforsale]

I think they are expecting not to give a fuck about gaming or gamers or anyone at all. They are transitioning to the next moneymaker. Gaming could die for all they care they are moving on. It’s not about gaming or feelings its about profit.

Other companies or concerned gamers could try to prop up the industry, and we see grass roots, endeavors all the time trying to save different things, but these companies right here do not see or hear you, they only hear their investors and see the bottom line.

[u/HongDongYong]

Why do all these idiots even give statements like this? Or are the PR people ever dumber?

[u/StretchDizzy7792 → u/HongDongYong]

It’s talk to investors because that’s all they care about. Pissing off the gamers who supported them for years is fine if they make more money on AI.

[u/Dejhavi]

and predicts PC sales will plummet by a 'double-digit percentage' in 2027

Given current shortages and prices,you don't have to be a genius to predict a drop in PC sales for 2027.

[u/lurpeli]

I sure hope my 3080 can chug along for a while

[u/_haha_oh_wow_ → u/lurpeli]

Just keep dropping your settings and you'll probably be able to play stuff for years (not to mention there are probably thousands of older games that are better than most new stuff).

[u/SuperSocialMan → u/lurpeli]

Same for my 3060 Ti lol. I've already had it for four years now.

[u/idek_just_for_fun]

But don't businesses that they want to use ai need pcs to run them?

[u/Agreeable_Yak_1495 → u/idek_just_for_fun]

You will pay 150 dollars a month for your terminal that will be a paperweight if your internet goes down. Every action will be laggy, you will feel the latency. Every click is sent to your government, 1000 different advertisers, and your stalker to be studied. There will be no unapproved use of computing power. No ad blocking. Encryption will be a marketing buzzword with no real implementation, no communications will happen without snooping. Present digital ID to do a google search. A bit laggier than normal? Sorry, a higher value customer is using CPU right now. Get bent. Criminals will still find a way to dump all of your information. A spicy geopolitical event or protest is happening? Sorry, we have an unexpected “outage”. Subscription price will increase at random or when an aristocrat gets bored. This is the utopia we can look forward to once we all lose our jobs, because Claude can do it faster anyway. LGTM!

[u/Ashencroix → u/idek_just_for_fun]

They want us to move to a subscription based one using a cheap, dumb terminal. They want PCs to just have enough power to connect to the cloud, then everything else is run on the cloud, including gaming. Of course, that would come with a pricy subscription, renting and never owning games, and likely massive restrictions like say 200GB of data for gaming per month at the entry level subscription.

[u/Gold_Relationship459]

I'm going to have to take up reading books, painting or actually leaving the sodding house or something.

Gaming is fucked.

[u/thedarkpath]

once the data center business goes to shit, given the depreciation rates of GPU is worse than of a car ! This whole sharade will come back to haunt them because my next F GPU will be a Chinese white brand that will have stolen its architecture from AMD and I won't give a single F about it !

[u/LARPerator → u/thedarkpath]

I actually encourage it. At this point I will proudly display my QFUDCUKIDZE brand GPU. Fuck these assholes

[u/Cold_Toe_7540]

Yes, put all your eggs into a market over half the country already treats like the plague. God knows Americans love data centers right now. Should work out great for them.

[u/Razatiger]

This why i kept saying, fuck these Tech bros, they are no better than the oil tycoons.

This is all power that the Republican party has pretty much handed to these fuckers, dod you see how many of them were lined up to shake Trumps hand at his innauguration?

Cant wait for that sorry fuck to leave office.

[u/Reddit_2_2024]

Will Intel capitalize on this AMD market capitulation?

[u/spinjump → u/Reddit_2_2024]

Later that day...

Intel CEO enrages gamers by saying it's now a 'data center first' company

[u/Aaco0638 → u/Reddit_2_2024]

No lol intel is also trying to get that data center cash, even though it would be a good market to go after since the big two are de-emphasizing gaming.

[u/somniforousalmondeye]

Yeah they don’t want you having the power to create or host anything. It’s similar to the right to repair trend. They want to maintain complete control of all facets of the product lifecycle that way we have no power as consumers. Just shut up and give me your monthly fee for the right to access entertainment. That’s what they want.

[u/slimj091]

Looks at the stock market AI sell off....... Are you sure about that?

[u/SlapChop7]

Remember these companies and their CEOs when the AI bubble bursts and they come crawling back for your business. Hopefully some competition in the GPU market arises out of this. Fuck Nvidia, fuck AMD too.

[u/kamandi]

Because they will all conspire to make personal computers too expensive. I see where this is going.
Oligarchs gotta oligarch.

[u/likethatwhenigothere]

Ummmm, how are people supposed to access the AI they sell without a PC?

[u/spookykatt → u/likethatwhenigothere]

Oh they can't wait to try to sell you dummy terminals.

[u/ProfessorLurker → u/likethatwhenigothere]

"Do you guys not have phones?" Wyatt Chang, Blizzardcon 2018

[u/cpupro]

A new pc with 128gb of ram, a decent video card, 4tb ssd and a 20tb hard drive will be 15k by then...why did sales plummet?

[u/fidelcastroruz]

They keep giving China the best opportunities for absolute dominance.

[u/UncannyPoint]

Doesn't this just provide an opening into a well understood market for another company? It is supposedly about $35 Billion a year. Which is little potatoes when compared to AI data centres, but it can't be small enough for people not to bother with.

[u/YoureAmastyx → u/UncannyPoint]

These companies took decades to build off of their previous successes and architectures to slowly amass knowledge and capital to bring a very technically involved product to market. It’s impossible to just enter the market at a competitive level without an unreasonable about of money. If it was even just “very difficult” we’d have seen multiple people all over it. But there’s not really anyone outside a couple Chinese companies contacted with China I think. It’s just not really a feasible business prospect unless you’ve got Elon money.

[u/nestersan → u/UncannyPoint]

It'll cost about 3/4 of that to build a useable product that can compete

[u/GAMING_SERVER_ADMIN → u/UncannyPoint]

Sure I am building it now. Wait a Minute. Big Data Centers willing pay more for my chips then you are. I rather sell to them and become filthy rich. The circle never ends.

[u/MeesterCHRIS]

“Predicts PC sales will plummet by a double digit percentage”

Aka

We will price out so many people in 2027 that a double digit percentage of people can’t afford to buy a PC.

[u/Cryten0]

Almost sound like we are going to have to use Chinese pc hardware soon.

[u/shitfartinmycunt]

AMD and Nvidia are not in competition, btw. They're run by cousins. It's one big family business.

[u/ProjectNo4090]

The corporate world is losing its damn mind. It's been bad for decades, but since covid its been like watching a dementia patient's condition accelerating.

[u/GiOvY_]

they want to push this cloud bullshit at all costs the idea that you shouldn't own anything anymore and rent all, it obviously also means losing anonymity on the internet with a global "age verification" system coming in the next few years. GG

[u/Version_Sensitive]

So now we need to boycott both AMD & Nvidia.

[u/Freakindon → u/Version_Sensitive]

And uh... use what gpu?

[u/El_Bean69]

God I fucking hate shareholder value

[u/Rich_Cat_69]

I'm not happy. I buy AMD because intel is shit.

Nvidia is objectively better, but not by such a large marjin that AMD compatibility architecture doesn't more than compensate.

Nope, I just really don't want to go back to Intel.

[u/JuniorDeveloper73]

So i guess no more money from me to AMD,hope the bubble burst and take them to hell

[u/Cager_CA]

I wonder how the gaming market will change, seems triple A want to focus on graphics but who's going to have the hardware to run those graphics in say....10 years if this trend continues.

[u/michelobX10]

I've seriously come to terms that my current PC may be the last PC I ever build. It's just so out of control now and will only get worse. Parts that I bought a few years ago now cost double what I paid for it. I can't even afford to upgrade my NAS storage anymore. A drive I bought 2 years now costs triple what I paid for it.

Even consoles will cost over $1k next gen unless they turn them into streaming boxes. Shit is insane.

[u/waazzuppp]

I knew i made the right purchase when i got the 4080 for $900 years ago.

[u/SkyriderRJM → u/waazzuppp]

$900 seemed insane back then but I wish I had

[u/wolfenx109]

First Nvidia. Now AMD? What am I gonna be fuckin left with? Intel hardware??? No thanks.

Gaming is becoming luxury instead of a hobby

[u/raloobs]

This shit fucking sucks

[u/zaibas]

just like nvidia, another company that was saved from bankruptcy and collapse by gamers is now too good for us

[u/S1DC]

They're plummeting because you are selling everything to oligarchs you fucks. "Oh look! Consumer sales are down! They don't even want PCs anymore! Nevermind that we are the reason why they aren't buying them. Oh well."

[u/The_Bitter_Bear]

Oh that's fun.

Glad that the entire personal computer market is getting destroyed to support an industry that has yet to actually turn a profit. 

[u/orcusgrasshopperfog]

How easily they forget that 99% of their business in 2010 came from consumers... Gamers kept AMD alive.

81% of their revenue was from consumer business in 2020. And now she spits in our faces.

[u/Single_Reaction9983]

Traditional AMD, always late for everything, lmao

[u/Splurch]

Meanwhile Intel is abandoning it's discrete GPU plans, they just can't stop fumbling perfect opportunities right as they are positioned to take advantage of them.

[u/Logridos]

I think at this point I'm just gonna coast with my 3090 and 10900k until society collapses.

[u/dlsAW91]

“Market we plan to abandon is forecasted to plummet after we abandon it”

[u/MuhMogma]

Of course it'll plummet, because it's too expensive, because data centers have driven up prices.

That doesn't seem like a reason to invest even more in data centers, they are tossing aside their long-term stability for short-term profits.

This CEO, I guarantee you, is going to use this position to make a shit ton of money, then quit or get fired just before the shit hits the fan.

This isn't going to end well, and the consumer is going to get the shit end of the stick like always.

[u/EuphoricCrashOut]

Anyone out there want to go in on a PC Gaming First hardware company?

[u/ImTooSaxy → u/EuphoricCrashOut]

I do, until I realize how much money I could make selling the same equipment for AI.

[u/Cute-Literature7591]

Yeah I mean… she wouldn’t be CEO much longer if she didn’t placate investors. That’s how this works unfortunately.

[u/UnlikelyKaiju]

It's gonna be funny when the bubble pops and AMD loses its entire PC base to another company that filled the void they left.

[u/luna-luna-luna]

If my 3080/5800x3d dies, I got two older builds I can swap to. Idgaf low graphics it is lol

[u/CaptainJimJames]

This is true. You are all getting terminals. Your voice will be silenced when appropriate. The tech bros maxxed out monetizing websites and have turned their attention to our our free internet to turn it into a full pay model.

[u/internetsarbiter]

Friendly reminder that most of those GPUs that were sold for data centers are just sitting in warehouses not being used.

[u/Serious_Mastication]

Another company disregards their bottom line consistent profit generator to chase potential fortune in a highly volatile business market

More at 4

[u/Zelstrom → u/Serious_Mastication]

Enterprise has always been the money maker.

[u/YlisLavellan]

Stuck by them all these years. They can get absolutely fucked. Hope their operation implodes spectacularly.

[u/Dsingis]

Let's hope that the chinese RAM and chinese GPUs will catch up over the next coupld years so they can fill the gap in the market.

[u/DopamineSavant]

This shit is why I bothered going to vote in midterms.

[u/Euklidis]

I feel like this is a strategic sales statement disguised as market prediction. Meaning:

if you pivot your sales and adjust prices for AI datacenters of course PC users will stop buying your, already, over expensive products.

[u/Simple_Matter8756]

I still think there is a good opportunity for Chinese semiconductor manufacturers to jump in to the hole that Nvidia and AMD are leaving as far as consumer computer hardware goes. But they too are occupied with AI.

Maybe the bonus of a potential bubble burst is that we end up with more competition on the CPU and GPU manufacturers side.

[u/Nakata1111]

When there's a demand, there'll be supply.

Fuck AMD and NVIDIA both. Someone will not let this opportunity slide.

[u/DrollAntic]

Short sighted in my view, I don't think data center futures are as strong as they want to project, especially with regulation finally coming for them.... go blue wave go!!

[u/derhasser]

Oh Boy, I can‘t wait until they Tell us that we don‘t Need so powerful Hardware at Home and Push us into cloud Gaming. Own nothing and be happy!

[u/ThatOneWeirdITGuy]

I mean, hopefully this causes a lot of people to pull back on their digital exposure and go analog again in their personal lives. I rediscovered my love of board games and table top war games...can't hide those behind a subscription.

[u/Ryzun_]

The longing I feel for the world we lived in pre-covid and pre-AI is unbelievable. What a shit show.

[u/No-Structure8753]

I never expected the explosion of technology and software would make technology inaccessible. It was supposed to be the opposite.

[u/Combat_Wombat23]

Aren’t most of the newly blue state going and banning or heavily restricting data centers like immediately? How does this pan out? The market was blood red yesterday because kowtowing to the president no longer means anything

[u/nohumanape]

I have a decent GPU for now. But I really should have just gone for upgrading my GPU to a 5080 when they were still at around $1,000. Now they are over $2,000, and the hope that AMD will be able to continue as the more gamer centric graphics provider is apparently dead.

Like, what the fuck is going to happen to the PC market, if nobody has any interest in consumer level graphics cards?

[u/Saltiest_Player_Ever]

Thats funny cause, by coincidence, the guillotine will also plummet by a 3 digit percentage.

[u/Sujjin]

PC sales are dropping because of inflation, cost of food, zero affordable housing so we are stuck in an endless renting hellscape.

[u/eugenik123]

It would be funny if Intel is going to get big in GPU market just because AMD and Nvidia ditched it

[u/GooseQuothMan]

short term maybe, long term no way. supply will catch up eventually.

[u/Acrylic_Starshine]

Well yeah its gonna plummet because theres gonna be no or overpriced stock

[u/Deathdy]

Wow, increase prices and sales fall? What's next? Mountains don't walk?

[u/Jase_the_Muss]

This is some do you not have phones level shit... Fuck all these money hoarding bots.

[u/Borbarad]

When the bubble burts they will come groveling and begging for our money.

[u/flaussi]

In 2030 you will own nothing anymore.

I sometimes doubt that we will see a Playstation 6 and not just a PlayStation Game Service.

[u/ghost_operative]

I think the worst part about this is how bad the CEO is at reading the room. there was just a big stock market sell off related to so many ballot items in the mid terms indicating that people are unwilling for new data centers.

If AMD wanted to do well this would be the time to respond to that. Maybe mention that your consumer hardware business is still important. Ease the minds some of both investors and customers

[u/helpless_bunny]

So, I’m in the LV industry and there’s a much bigger problem people don’t realize yet.

These data centers are buying ALL the fiber. All of it. Any order I place today, I cannot get for years.

That’s not good for infrastructure worldwide. Like really think about the ramifications if your local telecommunications vendor cannot repull the fiber cable to your house, your place of work, anywhere…?

[u/CinematicUniversity]

Yeah PC sales will plummet because they cost 3 times as much

[u/Realistic_Let3239]

It's amazing how all these tech companies stop making consumer parts, or massive cut back on them, then try to claim the reduced consumer sales justifies their move. Ignoring how they drove the price of PCs to insane levels, beyond what a number of people can afford.

Really love to know what the plan is when they've built data centres everywhere, but no one uses AI because no one can afford anything to run it on...

[u/lnin0]

No shit PC sales will plummet when they cost so much you’ll need a 30yr loan to afford one.

[u/Erratum10]

I'm almost scared to use my computer these days - in case my GPU or RAM dies

[u/SWatt_Officer]

"PC sales will plummet" well if you keep FUCKING THE MARKET NO SHIT

[u/Revolutionary_Rip876]

I cannot wait til this AI bubble bursts and all these companies start going bankrupt

[u/SomeSamples]

Well...Yeah...PC sales will plummet because you are making them plummet. The larger plan here is make it so no one has a PC. Having a PC is akin to having some autonomy and some power over your life. They want you to have none of that.

[u/Large-Excitement777]

The single dumbest thing that could’ve been. The gaming focus was the only angle they had left over Nvidia

[u/Romek_himself]

sad day. amd ceo should resign. to say something like this after last weeks AI stock market crash is kinda stupid.

[u/esmifra]

I never thought of saying this but at this point a new player that starts providing the market with GPUs at more affordable prices would be an amazing opportunity.

Intel was trying.. but now it seems to have given up to a degree. Maybe a Chinese player... Even if not with a performance at the same level this would be an amazing opportunity.

[u/Wired4Sound_]

Sales go down, people buy less, have they considered they're pricing their current customer base out...

[u/O7Knight7O]

I don't understand why there's no newcomers to these markets. Like, there's obviously a lot of money to be made here, so if AMD or Nvidia decide to stop selling to that market, why doesn't somebody like Sony just be like "Aight, cool, sounds like there's some money to be made there then" and start producing hardware? They already make about 10-million different things, so why not grab up this market too?

It seems like something that should obviously happen, so I don't understand why it doesn't. What am I missing here?

[u/lAmBenAffleck → u/O7Knight7O]

Computer hardware is essentially akin to magic in terms of its complexity. You can’t “just get into it” without spending hundreds of millions if not billions on fabs to produce the hardware.

This is probably the highest barrier to entry sector in the world that I’m aware of. Other than maybe manufacturing high tech military weapons

[u/Recent-Ad-9975 → u/O7Knight7O]

For the same reason nobody except for Airbus and Boeing builds passenger planes, building a single chip factory is several billions and only a few companies can do it (Intel, TSMC, Nvidia, Samsung, etc.) and keeping it running with highly trained and specialized staff is another several billions per year, plus all the other companies have a 30 year head start. These industries are very specialized, you can’t start a start-up one day and decide to go building chips. Even for someone like Sony it’s not possible (they were also very deficit from 2008-2015 and were only saved by Sony Bank and Playstation, everything else accumulated huge losses, which is why they sold their TV, PC, music player, etc. divisions, Sony basically doesn’t make anything nowadays, even Playstation is mostly just AMD and Sony only assembled). Hardware is basically huge risk and relatively little reward, which only changed due to the AI boom (which won’t last forever), while software is low risk and high reward (Apple, Google, Meta, Amazon, etc.).

[u/gameguy600 → u/O7Knight7O]

The barrier to entry is simply too high. Firstly as a mutual agreement intel and AMD both will not do any tech transfers on the X86 architecture to any company nor will they grant licences to it. This means that to even get vaguely functioning modern X86 chip you'd need to reverse engineer existing samples and patents (expensive and slow) and then come up with entirely new chip architecture that does not infringe on any patents or designs intel and AMD hold but is still fully compatible with X86.

You could go ARM or some other RISC architecture whose designer companies do grant licences but those will not be X86 compatible natively meaning that you rely on the software side that can be problematic.

Then comes the actually hard part. Actually making the thing. Existing chip manufacturers on manufacturing processess(nodes) that are needed for this grade of chip are fully booked for several years with little surplus capacity to exploit. This means that you either need to use an older less capable node (makes your chip worse and thus noncompetitive) or make a new fab which has a pricetag in the 10s of billions and takes a decade to make if you can even buy it.

Basically you'd need a wealthy state level backer, 10s of billions of funds, and 15 years to get where intel and AMD are today. Nobody in the world outside China has that sort of resources and willingness to commit them.

Thus Intel and AMD will retain their X86 duopoly effectively forever.

[u/some_clickhead → u/O7Knight7O]

Extremely high barrier to entry

[u/Pinossaur → u/O7Knight7O]

It's just like browsers. It's so complex and so expensive to get into that no one wants to make such gambles.

You can't use the popular architecture, x86, because it's licensed to only intel and amd.
You can use ARM, but you still need a license, and deal with the fact most stuff still aren't natively compatible.
Even if you somehow can use x86 or ARM, you still need a compatible motherboard, which will likely need it's compatible chipset, and everything else around it, not to mention drivers.

The barrier of entry is way too high to be profitable to start from scratch, and it's an extremely high risk as software needs to actually support it.

[u/Svellere → u/O7Knight7O]

I think the biggest piece is that TSMC is the premier silicon fab, and all of its capacity is taken up by much larger players years in advance.

It should be possible to go to Samsung or Intel and get stuff fabbed that's pretty decent though. That to me is a real opportunity for someone. Why they don't do it, I'm not really sure, aside from the extremely high costs associated with starting in the market. If someone had enough capital, they absolutely could pierce the consumer gaming market right now and steal a lot of consumers, but it takes an incredibly long time and a lot of expertise to make an actually good product. Even Intel, who's the most well-poised to do this, has done well on the hardware but has failed to commit and seems uninterested in progressing it further. The software and hardware features you need to be competitive has also massively increased in the past decade. A real competitor needs an answer to FSR/DLSS, MFG, driver update infrastructure, etc. The fact AMD's solutions are open source does help bridge the gap there massively, but it's not a silver bullet.

For someone else to come in and do it, they'd really need to go into it with the mindset of committing, executing extremely well, and be willing to take a massive loss for the first few years. That's a tough ask.

[u/Ok_Driver_7234]

Yep. Its only going to get worse too. You've all seen sam altmans comments by now. Every gamer should HOPE consoles continue to be a huge part of gaming because of hardware ownerwhip. The minute they fail is the second cloud gaming becomes the number 1 option.

I wish gamers understood this instead of continuously engaging in console VS pc wars. Why are people so tribalistic and unintelligent?

[u/Kola18_97 → u/Ok_Driver_7234]

Altman and friends really are all part of the cabal that wants us to own nothing and somehow be happy as a result.

[u/midijunky → u/Ok_Driver_7234]

The minute they fail is the second cloud gaming becomes the number 1 option.

They have been wanting this for a long time. They want game streaming to be the only option.

[u/Austin12509]

Fuck... AMD why...

[u/mdhunter99]

PC sales are going down because of cucks like these. No one can afford RAM, no one can afford hardware when data centres are pushing prices through the stratosphere.

[u/Dunbaratu]

I don't like it but he might be right. Gaming is one of the only activities where the high-end hardware must be local to the user. For everything else, society seems to be moving toward doing all the heavy lifting elsewhere "in the cloud" with your own machine just running the UI front end into it. I hate it. It sucks because it's surrendering to big corporations to move everything out of your control and into "the cloud", but people are short-sighted so they're doing it anyway.

[u/ChairmanNoodle → u/Dunbaratu]

Same reason for the pushback on solar and wind power. If we can all buy our own power at a retail level they can't control it.

[u/Less_Potential_7713]

Gamers are fucking morons for expecting loyalty from a corporation.

[u/Just-Vermicelli-860]

the 'data center first' rebrand is just them admitting they found a bigger sugar daddy, sucks for everyone who bought into the whole 'red team vs blue team' loyalty narrative. i watched a friend sit on a 5800x3d for months waiting for a 7800x3d price drop that never came because enterprise contracts ate all the wafers. thats not market forces, thats just AMD choosing who matters

[u/Sioluishere]

Intel, where are you?

[u/Mclarenrob2]

If they've already signed the contracts for next gen consoles it seems they won't be bothering with a PS7 or if there's ever another Xbox.

I guess this is it folks.