According to Nvidia and AMD’s Q4 2022 financials, Nvidia’s perceived significant lead, Team Red is only 11 percent behind in total gaming revenue. Nvidia was hit much harder in that sector than AMD.
Both companies recently released year-end 2022 reports that revealed startlingly similar fourth-quarter gaming revenue. While Team Green’s income in that sector fell 46% year on year to $1.8 billion, Team Red’s fell only 7% to $1.6 billion.
The fiscal year totals show a larger disparity between the two companies. Surprisingly, revenue in the gaming sector swung in opposite directions by nearly equal percentages. In 2022, Nvidia made $9 billion in gaming revenue, while AMD made $6.8 billion. However, the former fell by 27% in comparison to 2021, while the latter increased by 21%.
These figures are much closer to the picture painted by Steam’s hardware survey, which puts Team Green at 75% of the GPU market. However, computer graphics only tell a portion of the story.
Nvidia includes its GeForce NOW cloud gaming service in its gaming revenues, but console shipments are the real missing piece.
Sony’s PlayStation 5 and Microsoft’s Xbox Series consoles are powered by Team Red, while Nvidia only powers the Nintendo Switch. According to recently released financials, while Nintendo sold more consoles in 2022 – 14.91 million to Sony’s 12.8 million – the NPD Group reports that PlayStation 5 hardware sales generated more North American revenue due to its higher price.
Because Microsoft does not disclose exact Xbox console sales figures, it is unclear how much it contributes to AMD’s bottom line. Analysts estimate that the Xbox Series X and S have sold 17 million units to date, while Sony and Nintendo have sold 32 million and 122 million units, respectively. A global economic slowdown impacted various tech sectors, including PCs and PC parts, throughout 2022, but analysts expect things to improve in the second half of 2023.
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