Nvidia Posts Financial Results for Q4, GPU Revenue up Nearly 50 Percent

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John Pombrio

NVidia's revenue is about the same as AMD ($1 billion last quarter vs 1.5 billion) and made $118 million in profits last quarter compared to AMD's $89 million. Yet AMD chips were in over 3 million consoles sold last quarter. Didn't AMD make ANY money from the consoles or did it manage to bring AMD into profit after having a $500 million dollar loss a year ago? Either way, this console money is not going to sustain AMD for long.
BTW,Here is the financials from last quarter 2013-12-31 for SONY and MS games divisions. Both SONY and MS games divisions are about 15% of the company's total revenue. Last quarter, SONY's game division made $4.2 billion, with profit of $175 million. MS games division had $4.7 billion and a profit of $411 million.

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LatiosXT

Sony Computer Entertainment and Microsoft Home Entertainment make their money on software sales, not hardware. But this is the only time SCE has managed to make a small profit margin of a meager $18, assuming they get the full $400 per console. I don't know how much the Kinect is impacting the revenue for the XB1, but I can imagine Microsoft is not selling them at a loss either.

The BOM for the APU on either console puts it at ~$120. Plus AMD had to custom make the part, which required resources on their end. I also doubt the Bitcoin rush helped. And they have a meager desktop/laptop processor business to maintain, which is cutting into net revenue.

NVIDIA however, has a hand in the SoC market. It may not be at the same level as Qualcomm (who's pretty much the Intel of SoC's), but they have enough of a market to shake it up. Allegedly when Tegra 3 came out, everyone started to jump on the "more cores" bandwagon. And they also have a decent footing in super computers, with two of the top ten computers using NVIDIA parts.

Overall, AMD is in a bit of a bind here. They either need to branch out with a bang, or go out with a whimper.

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wolfing

I'm guessing to snatch the deal they had to literally sell them at cost (or maybe even at a loss to start). Remember consoles last like 8 years so maybe their projecting it'll cost them less and less to make those parts as time goes on.

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maleficarus™

I read info on a few sites and it is anywhere from $25 to $50 loss for each console sold at the beginning.

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maleficarus™

I still think AMD is hurting from buying ATi for 5 billion+

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John Pombrio

All analysts say that buying ATI was one of the best things AMD ever did. It practically saved the company.

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Peanut Fox

Selling off Imageon who later became Adreno may have been the worst thing they've done.

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Peanut Fox

I wonder if they're still making anything from the Wii or even the WiiU.

When you look at the bill of materials for both the Xbone and the PS4 the margins are really slim for both Microsoft and Sony. AMD's APUs is likely a low margin part.

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maleficarus™

From what I read every Wii sold makes them money.

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AFDozerman

And here I am, barley able to make the money I need to fuel up my truck.

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appleroxinhouston

At least you have a truck

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AFDozerman

True...