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Originally Posted by theoneandonlymrk
95 million wiiu's to also possibly supply with gpus all over the next 5-10 years,  wow they are going to be busy(wikki'd) if they only got a pound in proffit per chip, that their is still BEEEads |
The bold part, I didn't pay attention before, but it's an interesting one, because it made me realize that maybe my point is not understood because you are not really paying attention to what console sales really mean. Soo...
If they got 1 dollar of profit per chip...
...they would make 55 + 65 + 95 = 215
$215 millions in 10 years
or $21 million every year
or $5 million per quarter
http://phx.corporate-ir.net/phoenix....123&highlight=
That's pretty much nothing considering their annual earnings. And the reality is that they don't make 20x more profits than that, probably not even 10x that, per Xbox360 sold.
By contrast they make several dozens, sometimes hundreds of $ in profits per GPU or CPU sold and any shift in those markets will have a much much greater impact than console sales.
Console sales are a nice little addition considering that R&D overlaps with their GPU bussiness. A good way to get $20-50 million extra revenue at the end of the quarter, but it is in no way a life changing scenario as so many people pretend in this thread. If AMD had to be saved by this, it wouldn't, and it will certainly not make a scratch in Nvidia's financials which is what my original point was about.
EDIT: Sme more background:
http://www.techspot.com/news/47544-j...l-leading.html
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Slightly more than 124 million graphics chips shipped during Q4 2011.
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AMD came in second with 24.8 percent
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So this last quarter AMD shipped 30 million, extrapolating for 10 years 30x4x10== 1200 million GPUs shipped. At a much higher average profit per unit sold.