By the time of the next generation’s console upgrade in 2020, Microsoft’s Xbox Series X (XS X) and Sony PS will be on the market by the end of the year, and prices are likely to rise this year. Host price increases are unpopular with players, but AMD will certainly be happy, as high prices mean profits from their custom chip business will also soar.
Sony PS5, Microsoft XX have not yet released the price, both sides seem to wait for each other to sell first, but the previous price of 299, 399 may be difficult, 499 dollars or even 599 dollars is the next generation of host possible price, because this generation of host upgrade is relatively large, customized AMD chip performance in 10-12 TFLOPS, than the current high-end graphics card, not to mention 8 Zen2 core CPU, 16Gb.
The host price increases worry Sony, Microsoft and players, but that could be a good thing for AMD because the price hikes mean higher costs and their profits from custom chips will increase.
According to Mitch Steves, an analyst at RPBC, the average price is expected to rise in double digits this year, both in terms of sales and prices.
For AMD, he expects AMD’s revenue from gaming products to rise in the second half of this year, with higher-than-expected console margins.
His current rating on AMD’s stock is a “outperform” for the broader market, with a target price of $66 and AMD’s current share price at $54.