AMD's gaming business unit was the biggest driver of the company's revenue last year.
Sony became AMD's largest customer in 2022 – the PlayStation maker brought $3.776 billion to AMD, or 16% of AMD's revenue as PlayStation 5 outperformed its competitors last year.
As reported by Tom's Hardware, AMD's gaming segment, which offers discrete graphics processors for desktop and laptop graphics cards along with system-on-chips (SoCs) for game consoles, generated $6.805 billion in earnings and $953 million in profits, serving as the main revenue source for the company.
SoCs for game consoles made up the majority of the revenue for AMD's gaming business unit. This fact also suggests that, apart from PS5, sales of SoCs for Microsoft's Xbox Series X|S consoles were robust as well.
"Gaming revenue declined 7% year-over-year to $1.6 billion [in Q4 2022] as lower gaming graphics sales more than offset higher semi-custom revenue," AMD CEO Lisa Su said during the company's latest earnings call (via SeekingAlpha). "Semi-custom SoC revenue grew year-over-year as demand for game consoles remained strong during the holidays. Gaming graphics revenue declined year-over-year as we further reduced desktop GPU downstream channel inventory."
However, as a result of the typical console sales cycle, it is anticipated that AMD's earnings from PlayStation 5 and Xbox Series S|X SoCs will decrease in 2023 and beyond. Moreover, the projections indicate that AMD's gaming revenue in general is likely to decrease in 2023 when compared to 2022.
This decrease is primarily attributed to the declining demand for the PC and game console cycle. Meanwhile, AMD's data center business is expected to become the company's primary source of revenue in 2023, indicating a shift in its focus and a new area of growth for the company.
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