How AMD is taking over the game industry

Little did the world know in 2006, when AMD acquired and bought for 5.4 million dollars the Canadian company ATI (Array Technologies Inc.), what would happen next and how revolutionary was this movement. ATI specialized in the production of graphics cards and integrated circuits from PCs and portable computers. As a matter of fact, what we are experiencing today is largely due to that buyout. It allowed AMD to stand out, propose an alternative choice regarding powerful processors and go against the then market giant, Intel. Of course, buyouts can have a considerable impact on stock value. Several Canadian companies (like those mentioned in stand tall and thrive well in the market.

In the years to come, AMD laid hands on another great company, Nvidia by integrating at the same time the central processor and the graphics circuit into one chipset, then called MPU (Media Processing Unit). In 2008, AMD made its entry to the video game console world (since ATI was one of the largest providers of graphic cards for Nintendo). AMD was part of the new Nintendo console Wii but also part of Microsoft’s Xbox 360. From there on, the rest is history.

AMD set out a strategy that permitted to respond to two types of demand from the market. And the most important was that everyone wanted high-end processors and graphics cards for the gaming world of PC and console. And that is what AMD did exactly.

And now what?

AMD made headlines once more when it collaborated with Sony on the PS4 hardware, a partnership that proved itself especially successful. From the things we know so far, that partnership will continue, even more powerfully, in the PS5. The gaming giant has announced that it will launch its new console, PS5 approximately in 2020.

From what we know so far, the PS5 will have an 8-core AMD Zen 2 7nm processor based on the third generation Ryzen, an AMD Navi GPU that will support ray-tracing as well as 3D audio also from AMD. As a matter of fact, for a while now we are hearing rumors about how AMD deigned its entire new GPU Navi architecture mostly for the PS5, something unheard of in the history of graphics cards. According to the AMD CEO, Lisa Su, the PS5 technology is specially designed along with Sony for the needs of the new console and will contain fascinating capabilities.

But Sony was not the only company that rushed to take advantage of the leading place of AMD in the gaming world. Microsoft was eager to work again with AMD in its new and upcoming Xbox game console. It is scheduled also to be launched by the end of 2020 and it is commonly known as Project Scarlett. The new Microsoft console will have four times the computer power if compared to Xbox One X. And this thanks to a new, more powerful AMD processor. Partnerships with both those technology giants will give AMD the boost it needs to take over the gaming industry. Overall, AMD is doing some much better than other companies and its revenues have grown. So, it will come as no surprise if AMD preserves that advantage and enhance its share in the game industry since its more powerful and economic graphics cards will surely attract more gamers.

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