4 hours Ago By Kosta Andreadis
Thanks to data center products, AI hardware, and Ryzen CPUs crushing it in the client space, AMD's Q4 2024 financial results saw its overall revenue grow to a record $7.7 billion. And for the full year 2024, AMD's revenue of $25.
8 billion is a new record for the company. However, AMD's Gaming revenue, which includes Radeon products for PCs and chips for Sony's PlayStation and Microsoft's Xbox consoles, fell by a massive 59% year-over-year for Q4 2024. In addition, the reported Gaming revenue of $563 million is now a third of what it was for a similar financial period a few years ago.
And with an operating income of $50 million for the quarter, this too is down year-over-year - pointing to slim margins for chips used in modern gaming consoles. For 2024, AMD's Gaming segment revenue of $2.6 billion was also down 58% compared to 2023.
The good news is that AMD's Gaming segment is profitable; however, it has become the smallest segment of the company's portfolio. Naturally, there's no mention of gaming in CEO Dr. Lisa Su's summary for the quarter or 2024 - the focus is placed on record Data Center profits driving the company's current success and future.
"2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth," said AMD Chair and CEO Dr. Lisa Su. "Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated, and we delivered more than $5 billion of AMD Instinct accelerator revenue.
Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing." The losses in the Gaming segment are attributed to a "decrease in semi-custom revenue," which does line up with slowing Xbox and console sales for the current generation of hardware. However, current-gen sales have surpassed 100 million units across PlayStation 5 and Xbox Series consoles in Q4 2024.
The full slide presentation for Q4 2024 does mention that the Radeon RX 9070 series, "powered by RDNA 4 architecture, will launch later this quarter." It will also deliver "significantly higher ray-tracing performance" and "new AI-powered upscaling" with FSR 4..
