| Kasz216 said: [...]
Nvidia's videogame revenue was extremely disapointing last gen, they just didn't want to chase after the low ass margins the consoles provide, let alone at the even lower margins that AMD were offering because well.... AMD is desperate. They lost a billion dollar last year.
Really AMD's situation mirrors Sony, (Right up to selling their headquarters) except Sony has the advantages of being on the top in their field at one point and having good profitable buisnsesses. Well, and Sony actually moved their headquareters after they sold the building, they weren't desperate enough to sell their offices then just lease those exact same offices from the company who bought them. That's just... really bad. http://arstechnica.com/business/2013/04/the-rise-and-fall-of-amd-how-an-underdog-stuck-it-to-intel/ http://arstechnica.com/business/2013/04/amd-on-ropes-from-the-top-of-the-mountain-to-the-deepest-valleys/3/ (to skip to the console part) This is something people who are coming in from consoles might not know but... really this is a last chance gamble for AMD.
I think they're REALLY hoping somehow the Xbox One becomes huge as a TV Box. |
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.
