AMD rode the PS5, Xbox, and GPUs from a loss in 2020 to a likely billion in 2022

Photo by Vjeran Pavic / The Verge

The answer is $5 billion a year, and it is for the very first time. That's how much the company made from the "semi-custom" chips that go into Sony's PS5 and PS4 as well as the graphics cards and high-end gaming laptops that come with them.

It appears to have become quite a profitable business, too, and could exceed that this year: in an earnings call, the CEO says the company typically sees its most money from game consoles in the third quarter.

In just one year, operating income rose by over a billion dollars, despite the fact that the company lost money on gaming. Microsoft doesn't turn a profit on the Xbox itself, but it does turn a profit on the PS5 in late 2021.

The gaming revenue of the company is up.

You can see that in the slide above. Previously, game console revenue was lumped in with embedded and data center, and the graphics cards were lumped in with the computers.

There will be more than 50 percent improvement in performance per watt when the RDNA 3 is launched byAMD. A new launch is expected to improve demand in the fourth quarter, despite the fact that demand for gaming graphics is slowing down.

The data center business of Advanced Micro Devices is currently blowing up, but gaming is now its second biggest business. It is up 83 percent over the course of the year.

How much revenue is growing is shown here.