AMD CEO Rory Read revealed that revenue from embedded products, which includes video game consoles, is anticipated to account for nearly 20 percent of the company's revenue in Q4 2013. According to recent rumors, both Microsoft and Sony will use an eight-core AMD Jaguar based APU for their next-generation consoles. It also looks like this time AMD will be selling chips instead of licenses to its console clients.
. While the company does not disclose details, it looks like those designs wins are next-generation game consoles from Microsoft Corp. and Sony Corp. Moreover, it appears that AMD is changing its game console business model.
“We have strong design wins for our embedded and semi-custom APUs. Initials products based on these APUs are expected to launch later this year, driving our embedded semi-custom business to more than 20% of our revenue mix by the fourth quarter,” said Rory Read, chief executive officer and president of AMD.
Last year embedded products – including embedded accelerated processing units (APUs), embedded central processing units (CPUs), embedded chipsets and embedded graphics processing units (GPUs) – accounted for roughly 5% of AMD’s revenue of around $5.42 billion, which was $271 million.