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AMD Business Model For 2013

20% of revenue from games gonsoles, next-gen?

AMD are going through a tough spot in terms of profits, not unlike many other companies of recent years, so what are their plans for 2013 and what are they pinning their hopes on for the next 12 months and of course beyond?

AMD are expecting 20% of their revenue to come from embedded products by Q4 this year, which they account to their "major design wins". The interesting thing is the AMD isn't willing to disclose details even though they have been fairly open about all other main products and project for this year, especially at CES and with their roadmaps. It seems then that these integrated technologies will be their rumoured hardware for both Sony and Microsofts Next-Gen hardware and that big changes are on the cards for AMD.

“We have strong design wins for our embedded and semi-custom APUs. Initials products based on these APUs are expected to launch later this year, driving our embedded semi-custom business to more than 20% of our revenue mix by the fourth quarter,” - Rory Read (Chief Executive Officer and President of AMD)

We're already well versed on AMD's APU's and while they don't hold their might against the top Intel Core ranges they pack a heck of a punch when it comes to tackling graphics and processing tasks within one (relatively) low cost chip, something that Intel is yet to compete with. Already pegging AMD as the logical choice for next gen gaming hardware in games consoles. This part of their business however only accounted for around 5% of AMD's revenue last year, so expecting 20% is a huge increase in this area.

AMD have already stated that next gen games consoles are of great interest to them, yet of course they're not willing, or able to disclose a bean about it. What we do know however is that the revenue target already accounts for the Wii U hardware, there is however a big void to fill with these APUs that are expected to launch later this year.

Let’s hope that 2013 is the year that AMD spring back to good fortune.