AMD Lost More Than Half Its GPU Market Share In One Year - It's Time For An Intervention

[MilkyWhite]

AMD's discrete GPU market share is now less than its CPU/APU market share. Which is a frightening prospect, considering that Intel is a massively larger and more powerful competitor than Nvidia.

As of Q2 2015 AMD has reached its lowest discrete graphics market share ever since the inception of the Radeon brand. The company lost half its discrete GPU market share, down from apporx 36% in 2014- 38% in Q2 2014 - to just 18% this past quarter.



source : Jon Peddie Research
http://jonpeddie.com/press-releases/details/add-in-board-market-decreased-in-q215


The abundantly obvious reason for this massive market share loss is AMD's decision not to introduce a new generation of GPUs to compete with Nvidia's Maxwell based 900 series. Rebranding old GPUs - even fairly competitive ones - is clearly a failed strategy in the GPU market. The perceived value of such products by the consumer- despite the competitiveness of the product - is clearly lacking. And with Fiji based products being economically constrained to the high-end $550+ segment they will not contribute to any meaningful market share gains even if they were outselling their competing Nvidia GPUs, which they are not.

If we look at the discrete GPU market share graph above we can see that even with the release of AMD's highly successful and extremely competitive Hawaii based R9 290 series products in Q3 2013 the company failed to gain any market share. Being the smaller player makes it much more difficult to gain any meaningful market share and simply having a competitive product is not enough. So you can only imagine what would happen this year with products that are even less competitive than what AMD had in 2013 and 2014.

A 20% market share for Nvidia represents just 1/4 of the company's discrete GPU revenue, but for AMD it's 1/2 of their GPU revenue so it's a much more severe blow. Each percent AMD loses of market share is much more detrimental to the company than it is to Nvidia.

Lisa Su was directly over-seeing the graphics and computing segment, and only appointed a general manager from intel last quarter after letting John Byrne go last year. In my view Lisa Su was directly responsible for this historically catastrophic performance int he GPU segment for the company.

As gamers, hardware enthusiasts it's against our best interests to allow a pivotal company, an innovative company, such as AMD be run into the ground. We need to intervene, AMD management has failed and it's time for them to realize that and listen to what we have to say, even hire some of the folks here who undoubtedly will do a better job than what AMD management has done so far. I think it's time they gave someone like Linus and Wendell from Tek Syndicate a call and offer them consulting jobs.

[Kinda Bottlenecked]

Don't we already know this? I've seen this news on LTT.... 

 

Repost?

[MilkyWhite]

Don't we already know this? I've seen this news on LTT.... 

 

Repost?

This isn't news, it's a discussion. Have you read the post in its entirety ?

[Timopomer]

this scares me.

 

alot.

 

why would a game dev work with amd these days? no reason to.. 10% is laughable

[MilkyWhite]

this scares me.

 

alot.

 

why would a game dev work with amd these days? no reason to.. 10% is laughable

They would and they are because of the consoles. But that has very little to do with helping them sell product.

[TheMcSame]

Don't we already know this? I've seen this news on LTT.... 

 

Repost?

Technically it's a repost, though it isn't being posted as news. Then again, I wouldn't be surprised if there was already a thread like this, albeit a less detailed post.

 

 

As for the topic....

 

As gamers, hardware enthusiasts it's against our best interests to allow a pivotal company, an innovative company, such as AMD be run into the ground. We need to intervene

WE don't need to do anything, it's AMD that needs to get their ass in gear. Make a product worth buying and people will buy it.

 

I'm not attacking AMD when I say "make a product worth buying" but evidently the vast majority of the market believes that AMD is not offering something that's worth buying over the competition's offerings.

[Kinda Bottlenecked]

This isn't news, it's a discussion. Have you read the post in its entirety ?

 

The discussion has already been made quite some time ago :huh:  

[MilkyWhite]

WE don't need to do anything, it's AMD that needs to get their ass in gear. Make a product worth buying and people will buy it.

 

I'm not attacking AMD when I say "make a product worth buying" but evidently the vast majority of the market believes that AMD is not offering something that's worth buying over the competition's offerings.

It's definitely not a question about product competitiveness. The reviews are out and there are plenty of them. When AMD had a product that was as fast or faster than Nvidia they did not gain any market share. The R9 290 sold for $100 less than the 780 and it now handily beats the 780 in the majority of games and it has more video memory.

Even when the competitiveness is there AMD clearly struggles to gain any market share. It's an image problem not a product problem. The products are competitive and the press acknowledges that. Look at Tom's Hardware best graphics cards for the money list, they have the R9 380 and the R9 390 in there, but they're still being outsolled by the 960 and 970.

http://www.tomshardware.com/reviews/gaming-graphics-card-review,3107.html

[TheMcSame]

 

Regardless of the reason, my point still stands. We aren't the ones who need to sort out AMD's problems.

[MEC-777]

AMD GPUs, despite many of them being "rebrands" still offer a lot of value to those on the market for a new GPU. That is a fact.

 

I chalk the losses up partly due to the spreading of numerous myths and misinformation, and a general failure of many to properly understand the situation/facts. The "age" of the chips is not an issue if you look at performance - which is what should be the most important aspect of a GPU. I'm not saying power consumption is not important, just not as important. The whole "Nvidia sips power and AMD chugs it" has been blown severely out of proportion. 

 

There is also this growing double-standard, which I've mentioned in numerous threads, which basically carries the mentality of "Nvidia can do no wrong and AMD can do no right." It has no real basis in facts, yet so many seem to be adopting this as truth. I honestly believe the spreading of these concepts throughout the tech communities has done harm to AMD. 

 

People need to learn how to compare GPUs, properly, objectively, consider the context of the [financial and R&D] situation both companies are in and learn how to think critically for them selves - not let "the majority of the forums" tell them Nvidia is great and AMD sucks because rebrands (or whatever the lame reason). 

[MEC-777]

WE don't need to do anything, it's AMD that needs to get their ass in gear. Make a product worth buying and people will buy it.

 

I'm not attacking AMD when I say "make a product worth buying" but evidently the vast majority of the market believes that AMD is not offering something that's worth buying over the competition's offerings.

 

How is a product that performs better than it's competitor and costs less, a product not worth buying? 

[Elfuego]

They also need to get some not retarded marketing guys.

 

One of the big reasons I am forced to mostly buy nvidia (for work PCs) is CUDA. If AMD could get their CUDA equivalent into software I would be buying a lot more of them.

 

As it is I have purchased (in last 3 years) 4 AMD Cards and 29 nvidia cards, simply because CUDA.

[Kinda Bottlenecked]

How is a product that performs better than it's competitor and costs less, a product not worth buying? 

 

Marketing, superior marketing. This is why beats also sells a ton.

[MEC-777]

Marketing, superior marketing. This is why beats also sells a ton.

 

And sadly, not many people are immune to marketing. I could care less about marketing - I look at the product itself, the physical 'thing' and the merits/qualities there of. 

 

I agree, AMD's marketing is lacking, but the products should (and do, IMO) speak for themselves. If only more people would recognize this instead of parroting misinformation and marketing BS...

[don_svetlio]

IIRC that graph was proven to be off by 5% in another thread about this.

[Briggsy]

this is a repost of a repost, and Nvidia's graph doesn't match the numbers mercury research released themselves for Q2 2015.

 

If AMD were mainly a discrete GPU company like Nvidia, there would be room for worry. AMD's total annual revenue is larger than Nvidia's, and AMD's R&D is spread out across the microprocessor spectrum, and also in other areas like memory and software. When AMD is in actual trouble, there will be more than the odd thread about it started by meatpuppets, and we will see real evidence.

[MEC-777]

IIRC that graph was proven to be off by 5% in another thread about this.

 

Even if it is off by 5%, AMD is still very far behind. From a purely product analysis stand-point, they shouldn't be. 

 

Marketing and lemming-like consumers, I blame. 

[don_svetlio]

Even if it is off by 5%, AMD is still very far behind. From a purely product analysis stand-point, they shouldn't be. 

 

Marketing and lemming-like consumers, I blame. 

more or less - Marketing is the reason Nvidia is for far ahead.

[Prysin]

The abundantly obvious reason for this massive market share loss is AMD's decision not to introduce a new generation of GPUs to compete with Nvidia's Maxwell based 900 series.

The abundantly obvious reason is that Nvidia has better marketing and AMDs marketing is non-existent.

 

even their rebrands beat Nvidia.... what does that tell you?... the glorious 900 series, brand new in 2014/2015... beaten by TWO YEAR OR MORE OLD TECHNOLOGY... what does that tell you smartass?

 

AMD makes better hardware...

 

 

If AMD actually made some comericals, in some country, whatever country, perhaps even outside of the US. Then their sales would increase.

BUT, AMD doesnt roll that way. They just make a product. Announce it, then beg for the press to give it enough coverage so they do not have to start a PR camapaign to sell their products...

On the contrary, Nvidias PR department has a banner ready in their back-pocket. The moment they see a crowd of people, they'll wave and scream to get peoples attention.

 

 

Marketing is king. You can have the best products in the world, but if you cannot or do not sell them, they might aswell be made of fertilizers and clay bricks for all that matters....

[typographie]

even their rebrands beat Nvidia.... what does that tell you?... the glorious 900 series, brand new in 2014/2015... beaten by TWO YEAR OR MORE OLD TECHNOLOGY... what does that tell you smartass?

 

AMD makes better hardware...

 

It tells us that AMD makes exceedingly powerful hardware with a mountain of potential, and that they tend to leave, let's say, "room for improvement" in their drivers. A number of times, AMD's existing hardware has matured considerably over its lifetime just as a result of driver optimizations.

 

It's worth mentioning that whether they are beating equivalent Maxwell cards tends to vary wildly on a game-by-game basis. You really cannot say they are beating the 900 series with much consistency.

[Sauron]

this scares me.

 

alot.

 

why would a game dev work with amd these days? no reason to.. 10% is laughable

 

Even if they have 10% of the current marketshare their older gpus still have a pretty large install base that can't be ignored.

[TheConverter]

For the AMD fanboys out there still defending the Fury X watch this: https://youtu.be/BHAIe-fOTyM?t=14m39s then https://youtu.be/BHAIe-fOTyM?t=16m7s

 

 

It still don't understand why AMD is losing market share on the rest of the GPU-section where they clearly win against Nvidia with the 390 and 380.

[Prysin]

It tells us that AMD makes exceedingly powerful hardware with a mountain of potential, and that they tend to leave, let's say, "room for improvement" in their drivers. A number of times, AMD's existing hardware has matured considerably over its lifetime just as a result of driver optimizations.

 

It's worth mentioning that whether they are beating equivalent Maxwell cards tends to vary wildly on a game-by-game basis. You really cannot say they are beating the 900 series with much consistency.

we can say that for sure

 

265/270 vs 750TI -> AMD wins

270X vs 950 -> need benchmarks, i think this one is a tie or perhaps 950 is marginally ahead

285/380/280X vs 960 -> AMD wins

390 vs 970 -> AMD wins by a slim margin (5% at best)

390X vs 980 -> Nvidia win at raw performance, but 390X is considerably cheaper

Fury vs 980 -> AMD wins

Fury X vs 980Ti -> Nvidia wins

R9 295x2 vs Titan Z, Titan X, 980Ti -> AMD wins

 

so yeah... AMD wins MOST of the cases, sure you can OC a maxwell card to beat the corresponding AMD card.... but then again, you CAN OC a AMD card, at which point it would be faster, again. Unless you know, silicon lottery strikes and you get a shit AMD and a glorious Nvidia card.

[TheMissxu]

we can say that for sure

 

265/270 vs 750TI -> AMD wins

270X vs 950 -> need benchmarks, i think this one is a tie or perhaps 950 is marginally ahead

285/380/280X vs 960 -> AMD wins

390 vs 970 -> AMD wins by a slim margin (5% at best)

390X vs 980 -> Nvidia win at raw performance, but 390X is considerably cheaper

Fury vs 980 -> AMD wins

Fury X vs 980Ti -> Nvidia wins

R9 295x2 vs Titan Z, Titan X, 980Ti -> AMD wins

 

so yeah... AMD wins MOST of the cases, sure you can OC a maxwell card to beat the corresponding AMD card.... but then again, you CAN OC a AMD card, at which point it would be faster, again. Unless you know, silicon lottery strikes and you get a shit AMD and a glorious Nvidia card.

Until you turn GameWorks on... Then Nvidia basically win every time.

[TheConverter]

R9 295x2 vs Titan Z, Titan X, 980Ti -> AMD wins

 

so yeah... AMD wins MOST of the cases, sure you can OC a maxwell card to beat the corresponding AMD card.... but then again, you CAN OC a AMD card, at which point it would be faster, again. Unless you know, silicon lottery strikes and you get a shit AMD and a glorious Nvidia card.

 

R9 295X2 and Titan Z are both discounted so the last one doesn't make sense.

 

I wonder how many TItan Z's Nvidia sold... maybe 10 

Kinda funny how a 980Ti is now almost 5 times as cheap and scores about the same and that in just 1.5 years