It is no secret that gaming hardware has been getting more expensive this 12 months, so it should not be shocking that persons are shopping for much less of it. However, it seems that AMD’s gaming enterprise shrank by a whopping 31% in Q2 2026.
Within the second quarter of the 12 months, the gaming enterprise solely made $779 million, in comparison with $1.1 billion in Q2 2025, based on the company’s latest earnings report. AMD attributes this loss to ‘decrease semi-custom income’, which implies fewer consoles have been promoting over the previous couple of months. And, that is in a time that may have included the Steam Machine and the AMD Radeon RX 9070 GRE in June 2026.
AMD’s gaming income is lumped into the Shopper and Gaming phase, and general, that portion of the enterprise was up 6% 12 months over 12 months, making $3.8 billion. AMD’s processors have been making their method into extra fashionable laptops, particularly within the price range vary, and whereas the corporate’s earnings report does not lay out precisely which merchandise have been promoting, it is not exhausting to think about that lots of this development got here by the hands of price range laptops that do not have a ton of RAM.
However whereas the gaming enterprise is not doing all that nice, AMD is prospering. The corporate raked in $11.5 billion in income final quarter, which is up 51% over this time final 12 months, pushed largely by AI. AMD’s information middle enterprise introduced in $6.7 billion final quarter which is a large 107% improve over final 12 months. So, regardless that {hardware} is dearer and tougher to even acquire, AMD is bringing in extra money than ever earlier than.
It is probably that the gaming enterprise will proceed to shrink over the following 12 months or so, whereas AMD cashes in on the AI increase. And particularly now that the Xbox Series X has officially went up in price and each Team Green and Team Red reportedly plan to lift costs on gaming {hardware}, it actually does appear to be gaming {hardware} goes to proceed to fall down the checklist of AMD and Nvidia’s priorities.
Jackie Thomas is the {Hardware} and Shopping for Guides Editor at IGN and the PC parts queen. You may observe her @Jackiecobra
