AMD: Nvidia’s Claim of Low Profit in Console Business “Seems a Bit Like Sour Grapes To Me”

Quoting John Carmack, Hallock talks about how hardware standardization will benefit devs in the long run.

Posted By | On 18th, Aug. 2013 Under News

We recently spoke to AMD’s PR lead for gaming and enthusiast in graphics Robert Hallock about the next generation of gaming, technology, the PS4 and Xbox One and much more.

However, given that this is AMD, which manufacturers CPUs and GPUs, which is competing with Nvidia, who also manufacturers GPUs and hasn’t been rather bright about the console business, we thought of getting Hallock’s take on the situation. After all, AMD has a rather strong future in the console business since it is manufacturing the CPU/GPU for both the PS4 and Xbox One.

On asking whether the console business wasn’t something that shouldn’t be aggressively pursued, since according to Nvidia the profit margins were low, Hallock stated that, “The position seems a bit like sour grapes to me. The reality, according to industry legends like John Carmack (citation), is that the standardization of console hardware will, in his words, ‘make it cheaper and easier to develop games for multiple platforms.’

“And, he continues, that will improve the quality of games as devs spend time polishing them, rather than juggling architectural particulars. We are very proud to help enable this sort of ecosystem for game developers, and excited that such an ecosystem runs almost unilaterally on our hardware. I can’t imagine why anyone would willingly cede such a favorable situation.”

Back in March we had reported that Nvidia rejected to work with Sony since they were not too impressed with the price they were offered. You check out that story over here.

Stay tuned for our complete interview with AMD later next week.

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  • Dakan45

    I dont see the point of this article, Nvidia made it clear, pc gaming shows constant profit.

    Nvidia was asked first by sony but declined because the thought it didnt worth it for the price.

    So amd who is basicly not doing so well picked their laptop APU model and shoved a weak ass cpu on a midrange card with onboard ram and designed the “next gen” consoles.

    Thats pretty much it. But ofcourse its nvidia and crytek that are “butthurt” and not amd and sony that overhype.

    • monstercameron

      it isn’t hype when
      a. amd won all 3 consoles
      b. are picking up steam in dgpu sales
      c. picking up steam in laptop apus
      d. has the potential to compete with nvidia in windows performance tablet space.

      nvidia is being pushed back, weak desktop market, no console wins and the unfortunate losses in the tegra department…i’ll be interesting to see nvidia pull out all the stops…especially with mobile kepler…

    • Dakan45

      a.Wait what? Amd already had wii last gen and nvidia did work on the other 2 i think. Nvidia clearly stated console margin profits dont worth it, not just one system

      b,c no idea wtf you saying here.

      d. I dont get what you mean here either.

      What weak desktop market? The hardware sales are higher than ever, the PREBUILT cheap ass crap like HP are low because no one buys pcs just for basic functions, they got ipads for that.

    • monstercameron

      a. means amdcan survive on low margins by share volume -assuming xbone and pis4 don’t bomb a la wiiu

      b,c. means amd is gaining market share from nvidia top and bottom

      d. is just speculation on my part

      and the desktop and notebook markets shrunk slightly according to analysts

    • Dakan45

      a. Yet nvidia cannot?

      b,c gaining from tablets and consoles not from pc hardware.

      I think i explained that, why buy prebuilt desktops and laptops when you can buy a tablet? This is not pc gaming hardware.

    • Axe99

      The thing is that up until now, PC games have tended to optimised with Nvidia hardware in mind first. With AMD hardware designs in both next-gen consoles, games and game designers will be moving to building with AMD hardware in mind. This will give AMD better results in the PC market, plus plenty of sales (likely high volume, low-ish margin, but they’ll still be making money) in the console market. Seems like it’s all win for AMD. On the other hand, the numerous sour grapes comments from Nvidia suggest that they’re not as happy with the situation – Nvidia have been the least-happy sounding hardware maker this year. That they’ve been trashing consoles while at the same time developing and releasing a handheld suggests that they’re direction is a little confused at the moment.

    • Dakan45

      No, games were optimized for consoles, nvidia worked closelly with the developers for drivers.

      AMD cpus will help on optimization because games will actually be made for 8 core pc cpus, still the 1.6ghz cpus that consoles have are laughable, you just cant find a 8 core cpu as weak.

      Will be interesting to see if amd will finally provide better drivers but dont expect miracles.

      “On the other hand, the numerous sour grapes comments from Nvidia suggest that they’re not as happy with the situation”

      Again with this “butthurt” missconception.

      Atleast nvidia is steady on their statements.

      Seem you didnt get it the first time, so ill repost this

      This was in 2011, was nvidia BUTTHURT about the CURRENT result even back then?

      Come on, Crytek also said next gen consoles wont reach crysis 3 visuals for a while, are they butthurt too? Sony likes to overhype their console capabilities, i think by now you would have figured it out.

    • Axe99

      The growth in PC gaming estimated in that chart is due, in no small part, to social and browser gaming – something that’s hardly going to need state-of-the-art kit from Nvidia. It’s easy to spin the numbers, but as stated in the article you linked: “PC gaming certainly isn’t dead, then — but perhaps the archetypal PC gamer is.” The ‘new’ PC gamer is hardly the kind of person that custom-builds a rig with two 780s in SLI.

    • Dakan45

      Yeah but since 2011 the indie market has exploded and ton of games have apeared with games like rise of the triad and shadow warrior and games getting better pc support, this is constantly changing, combine the fact games will run better on pcs, id say nvidia will be fine rather in a mess that everyone makes it sound like.

      I never claimed amd is not getting the most cash out of this, just that nvidia isnt butthurt as people claim.

      Its like people bashing steam because pc gaming is “dying” quick tell valve to turn tail and run, pc gaming is dying!!

      Riddiculus really.

    • Axe99

      Never said PC game was dying, I’ve got around 100 games on Steam, and it’s definitely alive and well. PC gaming hasn’t recovered from being decimated by piracy in the late 1990s (I was there, watching it get killed by people calling themselves gamers), but it’s getting there, and will soon be able to support a range of high-budget exclusives again – but it’s still not there yet.

    • Dakan45

      Ofcourse it has, games sell more now than in the 90s.

      On the other hand consoles need to sell a crapazillion of copies to sucseed on consoles and keeps rising to “appeal to a larger audience” crap, there is no balance there.

      Pc wont have high budget exlusives because NO ONE pays for them to be made. Sony and microsoft pay for their exlusives, no one owns pc, so no one will pay for them.

      Too many butthurt consoletards here.

    • Axe99

      There may be, but I’m not one of them. If anything, you sound (not surprisingly, as you always do) like an insecure PC fanboy. Not saying that’s what you are, just how you sound.

      As for MS and Sony, they pay for their exclusives, but only because they make money on them. Exclusives that don’t perform don’t get sequels. If there was money in leading with AAA games for PC, then publishers would be doing it. As it stands, though, if it weren’t for console, BF3 would never have turned up on PC, a huge change from when BF1942 was released.

    • Dakan45

      I am not insecure, pc fanboy, sure but not insecure, i got tired of seeing the same thing happen over and over again and people KEEP fallign for it.

      “if it weren’t for console, BF3 would never have turned up on PC”

      Wait what? BF3 was in developed for a very long time, what you base that on? That they attempted to sell the first bad company as a console title like the BF2 console version of bf2? Those were diffirent times, multiplatform development wasnt exactly easy. Had consoles not improve their mp capabilities, they wouldnt get battlefield.

    • Karl.Maurman

      But Sony never went to Nvidia to ask them to produce the chip. Why are you making up stuff?

    • Dakan45

      But sony DID go to nvidia first then amd, GOOGLE it.

  • PC GOD MAX – Rank 1

    Xbots and Sony Slaves need to unite, because the MASTER PC Race is going to r@pe you all!

    • demonsouls13

      Master pc Race i think you mean nerd pc race:)

  • John Pombrio

    Hmm, remember that AMD MAKES NO CHIPS. They just design them. SONY and MS worked with AMD to DESIGN the chip and then has them manufactured by another company’s FAB. That means that either AMD got a “one time payment” for the rights to use their chip or gets a royalty when one is manufactured. This could be PROFITABLE or NON PROFITABLE due to the resources AMD used to develop the chip designs. As AMD has been losing money heavily the past few years and sold their building in Texas and Singapore lately for the cash, so far it looks like the console “win” has not helped AMD’s bottom line much. That is the ONLY THING that counts for AMD: PROFITS. Same goes for SONY. Who cares who wins the console chip contract or the console wars if the companies involved do not make a decent profit out of it (unless you are MS, Google, or Apple with huge profits already).


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