The introduction of new technologies such as the Radeon RX 7900 GRE and AMD Fluid Motion Frames technology, which enhances performance across thousands of games, has not sufficiently offset the overall decline in the segment. The gaming graphics segment also faced challenges, with limited significant design wins for Radeon RX 7000M GPUs for laptops, impacting overall gaming revenue.
AMD's gaming segment still managed to post an operating income of $151 million, albeit a decrease from $314 million the previous year. As revenue has decreased, the operating income as a percentage of revenue fell slightly from 18% in the first quarter of 2023 to 16% in the same quarter of 2024.
The company's outlook for the gaming segment remains cautious for 2024, anticipating further revenue declines. This expectation is underpinned by the prediction that neither Sony nor Microsoft will refresh their current console models this year, which would have potentially boosted AMD's gaming revenue. The uncertainty extends to the discrete GPU market, particularly concerning the Radeon RX 8000-series RDNA 4 GPUs. There are speculations that AMD may focus more on mainstream and budget markets rather than pursuing a high-end RDNA 4 chip, potentially leaving the high-end market to competitors like Nvidia.
