Since its release in late 2020, demand for next-gen consoles has been quite high. With the ongoing supply shortages due to the pandemic, both consoles are still hard to find. In the latest financial earnings call with investors, the AMD CEO was asked about the current supply situation and seasonality. According to the CEO, AMD will increase chip production next year and expects 2022 to be another strong year for both Sony and Microsoft. On the other hand, 2023 will be a stronger year for the next generation consoles.
The statements made by the boss of the red team, Lisa Su, were as follows:
“ First of all, this console loop and it was incredible when you look at everything as a whole. I mean, if you think about the strength of the cycle, I can tell you the fact that we’re a little bit closer to year two now and the demand is very high. So we ship a lot of items. So the fact that demand is still high says something about product capacity captured by both Microsoft and Sony this console cycle. We continue to increase production. We expect 2022 to be another year of strong growth for consoles. If you look at the typical console cycle, the busiest year is actually the fourth year typically. So perhaps you would expect 2023 to be the highest year.”
The CEO also acknowledged that seasonality has become more “quiet” as COVID-19 continues to impact supply chains. For this reason, the company may change its predictable sales figures from time to time.
“ But overall this is a great platform. We love the fact that we have a large number of users using AMD technology on the console platform and will continue to increase the supply. And in terms of seasonality, seasonality becomes quieter in this environment until we reach a more normalized environment.”
As you know, SoCs specially produced by AMD are used in both game consoles and the role of the red team is important in this regard.