AMD deprioritizing flagship gaming GPUs: Jack Hyunh on New Strategy vs. Nvidia
AMD is shifting focus from flagship gaming GPUs to mid-range and budget segments to increase market share, aiming for 40-50% amidst Nvidia's dominance in the discrete GPU market.
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AMD is shifting its strategy in the gaming GPU market, as articulated by Jack Huynh, the company's senior vice president. During a recent interview, Huynh indicated that AMD will deprioritize the development of flagship gaming GPUs in favor of increasing market share, particularly in the mid-range and budget segments. This decision comes amid speculation that AMD may not release high-end models in its upcoming RDNA 4-powered Radeon RX 8000 series. Historically, AMD has struggled to compete with Nvidia, which dominates the discrete gaming GPU market with an 88% share compared to AMD's 12%. Huynh emphasized the importance of building scale and attracting developers, suggesting that a focus on high-volume products would be more beneficial than competing for the top-tier market. He acknowledged that while AMD will continue to produce quality products, the immediate goal is to capture a larger portion of the market, potentially reaching 40-50%. This approach mirrors AMD's past strategy during the RDNA 1 launch, where the company focused on mainstream offerings rather than high-end competition. The implications of this strategy may affect pricing and competition in the GPU market, particularly for Nvidia's upcoming products, as a lack of competition at the high end could lead to higher prices for consumers.
- AMD is deprioritizing flagship gaming GPUs to focus on market share.
- The company aims to capture 40-50% of the GPU market by targeting mid-range and budget segments.
- Nvidia currently holds 88% of the discrete gaming GPU market, leaving AMD with only 12%.
- Huynh believes that building scale is essential for attracting developers and gaining market share.
- AMD's strategy may impact pricing and competition in the high-end GPU market.
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4 commentsThe problem for AMD is that the 4060 mobile is an absolute killer laptop card. AMD needs a low power consumption high power apu to compete.
And both AMD and Intel lack much of any larger Professional Graphics Workstation Market presence and the Pro Markups to justify that kind of investment for giant monolithic GPU Die Tape-Outs for Pro Graphics Workstations!
Take Nvidia's GP102 tape-out from the past as an example and that Giant tape-out had more Quadro Branded SKUs and only one consumer branded binning, the GTX 1080Ti! And it's the same for Nvidia's later generations where that's for Quadro/A-series branded Pro Graphics workstation GPUs where Nvidia "__102" Tape-Outs are mostly Quadro/A series(The A series branding has supplanted Quadro branding for Nvidia Pro Graphics Workstation GPUs).
A lot of the people who are buying mid-range GPUs are asking their hardcore gamer friends with high-end GPUs for advice about what to buy.
If AMD isn’t competing at the high end, they are missing out on a very valuable funnel for mid-range GPUs
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