(Update) Rumor: PlayStation 5 will be using Navi 9 (more powerful than Navi 10), new update Jason Schreier said Sony aim more then 10,7 Teraflop

[DonFerrari]

Bofferbrauer2 said:

DonFerrari said:

https://www.macrotrends.net/stocks/charts/AMD/amd/profit-margins

https://ycharts.com/companies/NVDA/profit_margin

https://ycharts.com/companies/INTC/gross_profit_margin

70% profit margin isn't something common at all.

 

I said before taxes, you give me after taxes. Though I understand that I explained that only far down the text, so the error is on me, mea culpa.

With that knowledge, you'll see that the profit rate AMD had before taxes and operating costs (the gross profit margin, couldn't find the word before) is about what NVidia does percentage wise  after all operating costs have been taken into account. And that one dropped to 54% in the last quarter while having been above that for many quarters before. Same for Intel, who even mostly stay above 60%.

AMD, on the other hand, is mostly between 20 and 40%, with one quarter even dropping to just 4%. But the general trend is upwards, I don't doubt they can break into the 40% range this year. But for that they need to make some money from their chips.

Understand your point.

Still even though profit margins are quite important, to have a steady money influx that is assured is quite reassuring. Even more when we get to projections that GPU purchase racing is slowing down.

But I do agree that at this time AMD is on less pressure for thin margins than they were at the start of last gen, so that may increase the MSRP of the consoles for the same performance they were expecting (or put pressure on Sony/MS to eat up more cost)