In a bid to focus on the growing popularity of gaming devices,
Advanced Micro Devices Inc.
) recently launched its new Gamer Series Memory, AMD Radeon™
RG2133 and Radeon™ RAMDisk 4.1.
The newly introduced Radeon RG2133 Gamer Series Memory is
ideal for users who need superior performance for gaming. The new
XMP and AMP technologies, increased memory, less power
consumption as well as lifetime manufacturer's warranty will
enhance product performance.
Recently, AMD's processors have made great headway at gaming
console makers and will be used in
) PlayStation 4, likely to be released during the Christmas
holidays. Additionally, AMD's processor will be used in
) new Xbox video game console, expected to be launched later this
Gaming has become a focus area for AMD now. Both the next
generation consoles will feature AMD accelerated processing units
(APUs), which will boost the company's business. We believe that
these wins have positioned AMD at the center of the console
gaming industry and will lessen the company's dependence on the
declining personal computer market. It will possibly help the
company to regain some of the lost market share from rivals
A study conducted by DFC Intelligence suggests that the global
gaming market will increase from $67.0 billion in 2012 to $82.0
billion in 2017. Further, IDC estimates that there will be 257
million active consoles worldwide by 2015. These estimates
suggest that there are opportunities for companies like AMD to
increase their stakes.
The gaming hardware market is currently reeling under
competitive pressure from emerging social network sites and
competing hardware platforms such as smartphones and tablets. But
we expect the hardware sales to increase now because of the
upcoming new consoles. Since AMD is designed into all the major
platforms it should see good growth from the segment.
AMD delivered decent first quarter 2013 results. The company's
Computing Solutions were down sequentially but the Graphics
business did well in the last quarter due to accelerating desktop
GPU channel sales, game console royalty sales and workstation
Although the decline in PC demand may affect results in the
upcoming quarter, increased game console wins, adoption of new
products, new offerings and good execution from the company can
help win new customers.
Currently, AMD holds a Zacks Rank #3 (Hold).
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