AMD Focusing on Premium Chips Due to Shortages | Game Rant
The global shortage of tech parts required to build video game systems continues, with a lack of components like semiconductors preventing gaming and PC companies from producing more units. While the shortage hasn't caused production for companies like AMD to come to a total standstill, it has caused them to prioritize certain products.
Going back over a year, the component shortages have been a primary reason for the insufficient amount of next-gen consoles and GPUs. With the worldwide scarcity, largely brought about from the pandemic and high demand, the shortage is expected to last at least into next year, and has caused companies to rethink strategies. Sony is reportedly redesigning its PS5 hardware due to lack of supply, for instance.
At a recent JPMorgan conference, AMD CEO Lisa Su admitted the scarcity of silicon has led her company to focus on producing high-end chips at the expense of more affordable options. The CEO is aware that its newfound strategy will leave other areas of the business "underserviced" by prioritizing "higher-end commercial SKUs and gaming SKUs." Su elaborates further on AMD's stance, talking about how its current products aren't being made "to put it on the shelf," and that prioritizing the end customer is its goal going forward.
The statements come as a contrast to what Su said in a Bloomberg interview just a few days ago. In the interview, the AMD chief executive maintained a positive outlook on the availability for the company's graphic cards, claiming that chip supply will be ramped up sooner rather than later. Su says that the past year has been a "very active time" for AMD in terms of supply chain optimization, and that customers will notice more availability over the next couple of financial quarters. While the news of more robust stock is welcome, it appears said stock will largely be the company's more expensive products.
Despite the worldwide component shortage, that hasn't stopped other companies like Nvidia from releasing more GPUs, albeit older models. Last month, news broke of Nvidia reportedly relaunching its GTX 1650 range after pivoting from mobile device graphic cards. Originally launched in early 2019, the 4GB memory GeForce GTX 1650 is far from Nvidia's top-line graphics processor, but could be an alternative while PC gamers wait for higher-end options to become available - especially since AMD is extremely unlikely to re-release something like its Radeon RX 5300 to compete.
In terms of the previously mentioned high-end AMD GPUs, PC gamers may see them sooner than they think. A recent leak possibly reveals specs for the company's upcoming Radeon RX 6600 and 6600XT GPUs, a product pair yet to be publicly announced. While they're bound to have a hefty price tag, one can only hope AMD's stock is hefty as well.
Source: Seeking Alpha
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