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Machiavellian on 01 April 2013
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ethomaz said:
Machiavellian said:
Let me understand this.  So last gen the 360 and Wii had AMD/ATI GPUs and AMD is still in the red.  Now AMD will have a lock on all three major console OEMs and people feel that AMD is not going to make a profit.  If history is to be believed, AMD probably are not pricing their chips right and still we be in the red.  Going for the lowest bid but not being able to make a profit does not sound like a sound business stragety.

It appears to me that Nvidia has other interest and yes, whatever they are doing will be a competitor to the next gen consoles.  The key is will their solution be better which only time will tell.  There is no bitterness going on here, this is business and competitiors are always looking for the marketing advantage.

With all three consoles using AMD the company expect to account per 20% of the revenue in 2013... AMD is not only consoles... eveything else put the AMD in the red, not consoles.

Yeah, I read that line from AMD but now I am in more of a show me faze.  I know AMD is not all about graphics but I believe when ATI was by themselves they were in the red competing with Nvidia.  AMD was and still is in the red battling Intel so when both companies come together they are still in the red battling the same two companies.

 

It appears to me that AMD is still doing the same thing as they have in the past.  To gain market share they price their products where they are not making money.  People praise AMD for having lower costing chips then their competitors but it appears that AMD is sacrificing profits in order to do so.  I love getting more bang for my money but I also know a company cannot continue on this route as well.  There seems to be no overhead on AMD products so when the product is discounted they lose money.  The thing is, if you are always pricing at the bottom, you leave yourself no room to price at the higher point because of customer expectations.

 

It’s a double edge sword which AMD has not shone yet that they can do it successfully.

 

It’s like retail.  Most retail clothing cost way more than it cost to produce (I believe 75%).  This is done because those items prices will fall fast and thus the retailer can discount heavily and still make a profit.