Consumer discretionary

Advanced Micro Devices, Inc.’s (AMD) Last Earnings Report Confirmed at Least Two New Consoles for Fall 2016

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Advanced Micro Devices, Inc. left behind breadcrumbs for us to pick up

The past month played host to numerous reports from major publications about more powerful versions of PlayStation 4 and Xbox One that were all based on either industry insiders, or rumors and speculations. It has now come to light that Advanced Micro Devices, Inc. (NASDAQ:AMD) had already mentioned the hardware upgrades in its Q4 2015 earnings report in January.

While the company’s quarterly earnings report was publicly available for months now, it took only one Reddit user to take a closer look & read between the lines. An excerpt from the report refers to the expectation of increased revenue for the company in the second half of 2016 through “new design” and “new semi-custom business” from its EESC (Enterprise Embedded and Semi-Custom) division, a separate business unit that directly caters to AMD’s console market. 

Furthermore, AMD mentions the upcoming new semi-custom products as “design wins,” suggesting that the company is working on more than one semi-custom silicon device which it expects to release later this year.

The current word on the street is that Sony Corp. (NYSE:SNE) is frantically working on a more powerful version of the PlayStation 4 console, which it intends to release before the launch of PlayStation VR in October. Dubbed “PlayStation 4.5,” it’s said to be able to run games in native 4K resolution, as well as delivering a high-end virtual reality experience.

Microsoft Corporation (NASDAQ:MSFT) was thinking along similar lines for its Xbox One console. However, Xbox Boss Phil Spencer stepped forward recently to completely shut it down, stating that the idea did not interest him.

Nintendo NX is en route for an official unveiling this summer, strongly suggesting that the company’s new console could see to an official launch before the end of the year.

Both Sony and Microsoft currently have custom AMD chips powering their respective consoles. The Red Team is also heavily rumored to be involved with the Nintendo NX.

Considering the wordings of AMD’s Q4 2015 earnings report, it can be said that we’ll see the release of at least two new semi-custom silicon-powered devices this year. Seeing Microsoft’s recent backtrack for an upgraded Xbox One model, we can only assume the Nintendo NX and Sony’s PlayStation 4.5 to be the likely candidates.

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