[lewisl9029]

I'd have thought that the XBox One and PS4 GPU deals would have given them quite a boost, but it seems like they're still struggling these days.

Can anyone enlighten me on why those deals might not be helping as much as I thought they would?

[SXX]

> Can anyone enlighten me on why those deals might not be helping as much as I thought they would?

Good explanation may be found there: http://www.extremetech.com/gaming/150892-nvidia-gave-amd-ps4... "Two years ago, in January 2011, Nvidia CEO Jen-Hsun Huang told reporters that the Sony-Nvidia deal had earned Nvidia $500M in royalties since 2004. The total number of shipped PS3 consoles by March, 2011 stood at 50 million according to data from the NPD group."

[lewisl9029]

Thanks for the link.

I did think margins on any console GPU deal would probably be slim, but I didn't know it could be that slim. Seeing some hard numbers really helped.

[neilmovva]

Console hardware is always high volume and low margin; MS and Sony usually breakeven on costs or even eat losses at the start of a new console generation. For AMD, it was the volume they needed just to keep orders going to the fab and a cash stream of some sort, but actual profit is slim by nature of that market.

[kayoone]

My guess is that AMD probably wanted those deals so bad that their margin is not very healthy.