AMD’s Financial Woes
AMD is the main competitor to Intel in the eyes of the consumer (that’s us gamers), and in being the main competitor they are keeping the market computer processors from turning in to an Intel monopoly. Think about how high the price of internet is in South Africa compared to the rest of the world, now imagine Intel getting this idea, but being able to trade their service on an international level where pounds, euros and dollars exist. It could be disastrous for the average gamer in South Africa who wants to upgrade their rig with the latest chipsets.
Since 2010, AMD’s valuation was at just under $7 billion but as of the end of 2014 they are barely hitting the $2.5 billion mark. This is a substantial drop in their value, and rumours are reporting the company could go bankrupt in as little as five years according to a recent study available here . http://www.valuewalk.com/2015/05/advanced-micro-devices-inc-amd-bankrupt-by-2020/
Recently there have been disputes between AMD and Nvidia with regards to the Witcher 3 using Nvidia Hairworks and ProjectCARS using Nvidia Physx rendering the AMD cards at a disadvantage in performance reviews. Something that AMD Chief Gaming Scientist Richard Huddy was very upset about, stating that it seemed like the game’s developers had done this almost on purpose.
The study goes on to state that chipsets generally have a short life-cycle which is not the viewpoint of AMD. Nvidia are making technological breakthroughs (such as Nvidia’s Hairworks Technology) and it appears that AMD are yet to make a breakthrough of their own. History dictates that a company that cannot keep up with its competitors is likely to fail.
With these viewpoints in mind, it is very distressing for consumers to think that the major source of Intel’s competition may not be around forever.
AMD or Intel? Let us know in the comments below.