Originally Posted by svenge
Since AMD has publicly stated that they're envisioning 50% of future revenues coming from "high growth markets" (e.g. dense servers, embedded and semi-custom processors), it does seem that they've largely capitulated getting the performance crowns in traditional markets like x86 chips and GPUs.
The enormous costs incurred by their attempt to "bribe" gamers over to their side is one of the key reasons that AMD's graphics division (which is the only profitable part of the company) only had a profit of $16M (that's million with an "m") in Q1'13.
Spending $TEXAS on their "Never Settle" bundles really put a hurt on their per-card margins.
Okay, I have several issues with this.
1. AMD expects 20% of future revenues to come from "high growth markets"Source
2. What does a decrease in market share have to do with a company's ability to release new products that match or exceed the competition. If anything it is only more of a reason for a company to release products that match or exceed the competition.
3. Yes, the never settle bundles are costing them alot of money. Also, Yes, Nvidia's cards have a higher profit margin even with the bundle excluded but they are not looking to make some quick cash. Their betting the farm on APU's and Gaming, and if they had to break even in discrete GPU's just to push forward the rest of the company you don't think they would? Long term goals is to establish AMD as the go to company for Gaming. They wont do it overnight, but they will continue to sell high performance cards with lower prices and lower profit margins than nvidia until they increase their market share and eventually increase their fan loyalty base. I bet most people who purchased a 7xxx are very happy with not only the games but the performance of their cards.
I can tell from your sig rigs thats your a Nvidia fan, and I wasn't talking trash about Nvidia. Both companies have been pretty even in performance for awhile now. Which is why I don't get people have their doubts about AMD's GPU division. Yes, the drivers were not as good as NVidia's but they have invested more money into the 7xxx series and they have improved drastically.
From everything you said it sounds like your just hating on AMD just to hate on AMD.