AMD hardware provides the processing and graphical powerful for both new machines along with Nintendo’s Wii U. Devinder Kumar, Senior Vice President and Chief Financial Officer of AMD, said in a conference discussion yesterday that he expects the time to the next-generation of consoles will be shorter than before.
"The life cycle of the products are probably going to be shorter,” Kumar said of the current generation of consoles during a Q&A session at the Bank of America Merrill Lynch Global Technology Conference. “Our customers are already thinking about what comes next.”
“These are long life cycle products and as you know in the semi-custom space,” Kumar continued. “Three years before you introduce a product, a decision is made to use a particular company. In this case it was AMD. And then you go ahead and co-develop the product with the funding dollars frankly, mostly coming from our customers. And then when you introduce the product, there is really no expenses from R&D standpoint, no sales and marketing dollars and whatever dollars you generate from a gross margin dollar standpoint, falls to the bottom-line and that’s what excites us.”
Source: Examiner
