Kasz216 said:
Alby_da_Wolf said:
[...]
This AMD gamble should be a quite safe one, luckily: even if 8th gen will sell the same as 7th, or even a little less, AMD share on it will be far bigger, and actually MS and Sony are giving it a huge help to launch what will be the top of AMD low power consumption APUs range. In the worst possible scenario console market will give AMD little help, but it shouldn't damage it. About leasing the offices they just sold... MEH, this shows AMD's worst problem, its management SUXXXXX!!! Hard. If they cannot afford them anymore, don't lease them, move to a cheaper area and instead of paying a rent, get a loan to buy cheaper offices and use that same money of the rent to at least end up owning what you're paying for.
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What makes you think AMD's share will be far bigger? I think it will be the opposite. They are providing both a GPU and CPU HOWEVER they've likely had to offer cut-rate margins to accomplish it. I mean, again remember, Intel DID have the tech that AMD does, they just backed off. Nvdia saw about 500,000 revneue total from the PS3.
Also remember, that same shitty management more or less is who approved the revnue deals.
http://www.trefis.com/stock/amd/articles/188123/amds-surge-on-game-console-wins-looks-overdone/2013-05-23
In general too it's more an issue of what the whole thing represents, which is AMD essentially trying to go where they think intel doesn't want to be. That's more or less what their whole APU line is about.
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Obviously AMD had to make a very good offer, even more obviously it probably had to cut its margins even more when NVidia competed for the same market. Even a small margin, though, can help AMD fund the production of its low cost lines, where mass production is of the essence to drive costs down. About AMD trying to go where they think intel doesn't want to be, not having intel's huge cash it's a mandatory strategy: intel used all its influence to stop AMD growth in PC market even during those 6 years when AMD desktop chips regularly outperformed intel's ones and when Pentiums were seriously bugged and some intel chipsets bugged or flawed or deliberately gimped (the latter happened when intel was betting on Rambus memory with i820 and i840 chipsets, offering for a while very shitty i810 alternatives based on normal RAM), gathering all that intel doesn't want isn't a bad strategy, but to make it work the company must be more frugal, keeping every cost that isn't essential down: even good deals cannot be enough if they insist on keeping luxury habits they can't afford. About this particular issue, most western managemers should learn a thing or two from Japanese ones, but also, staying in the West, from prudent tycoons like Warren Buffett.
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