With the winds of change at AMD pushing their microprocessors to the top of the gaming charts, consoles in the future could feature more AMD technology as custom hardware falls in focus at this major manufacturer.
While speaking with the Senior Vice President and Chief Financial Officer of AMD, SeekingAlpha plucked some overlooked details on what could lead to the next generation of gaming – either from the companies we’ve come to expect, or possibly another source. As all of the current generation gaming consoles use processors developed by AMD, despite their varied power, AMD has set focus on PC processors created for user installation until the rise of current generation gaming. Given an increased demand in these custom gaming console processors, AMD stands to profit a great deal from lower powered custom designed processors, and is focusing on this technology just as well as their PC divisions in the coming years – according to their SVP and CFO Devinder Kumar.
The other thing I’ll mention in the semi-custom business which you probably picked up in the announcement that we had in October earnings call is we’ve been having a lot of interest in the semi-custom business, the semi-custom business is very unique, whereby it takes AMD’s core IP, we use it across market segments, across customers, across products, customer interest has been high and we projected earlier this year that we would have at least one to two semi-custom design wins and I’m pleased to report that we have those design wins, the work to design the products that has already started, the contract assigned and those parts get introduced in 2016.
We didn’t say at which space it is in. I’m not going to give too much detail. I’ll say that one is x86 and one is ARM, and atleast one will be on gaming, right. But that’s about as much as you going to get out me today, because the customers from the standpoint to be fair to them. It is their product. They launch it. They announce it and then just like the game console or the parts you find out that its AMD’s APU that’s been used in those products.
With an ARM or x86 architecture coming to gaming in 2016, this could mean the announcement that Nintendo needs desperately for their next generation of console. Should they release an x86 console with comparable power to that of the PS4 and Xbox One, it would considerably improve their status with third party developers and potentially change the landscape of gaming as we know it. Looking at a gaming environment under the ARM architecture, don’t expect a lot of flashing lights as development for mobile is where ARM is centralized. Any gaming discussions with the ARM custom processor mentioned here could be used in a new 3DS or a sequel to the Ouya, but couldn’t feature prominently unless Nintendo is picking up both custom processors for a sophisticated and revolutionary device to hit the E3 show floor.