Sony’s selling so many PS5s it’s become AMD’s biggest GPU buyer

With the launch of Sony’s new Playstation 5 (PS5) last November, the gaming industry has been buzzing with more excitement than usual. The pandemic has led to a surge in demand for the latest console, with Sony working hard to keep up. It has become the biggest demand generator for microprocessor giant AMD during this time, as the company supplies GPUs and a number of other components inside the PS5.

Indeed, this sudden demand for the PS5 has been so overwhelming for Sony that it currently stands as the biggest consumer of AMD’s Graphics Processing Units (GPUs). As quickly as the new console was made available, it was already sold out from online retailers, forcing gamers to start looking elsewhere. Gartner analyst Jon Erensen estimated that this demand “ramped up over the past year”, making Sony’s purchase of AMD’s “graphics components critical”. Of course, AMD is also a major supplier to Microsoft’s Xbox Series X and S, though the gaming console demand from Sony seemingly pays off better for the chipmaker.

During AMD’s recent earnings report, the company attributed some of their success to Sony’s billion-dollar orders for these GPUs. And with the pandemic continuing to drive demand for the PS5, it looks like there will be a continued demand for AMD’s components, at least for the near future.

The current partnership between Sony and AMD is seen as a win-win situation for both companies. AMD’s GPUs not only offer much-needed strength to Sony’s PS5, but they can also be used in the future consoles released by Sony. As AMD’s chief executive Lisa Su commented on the recent earnings call: “It’s really a big opportunity, longer term”.

Besides Sony, AMD is also making deals in other parts of the tech world. They recently announced a partnership with Samsung to launch new mobile chips, signalling AMD’s intent to expand into the mobile market. With more customers, AMD can make itself less dependent on Sony’s current GPU consumption.

In any case, Sony’s demand is currently fuelling AMD’s success. And with its PS5 continuing to be in short supply, Sony’s demand for AMD’s GPUs will no doubt continue. It will be interesting to see how long this trend lasts and what effects this has on both companies in the future.