Cryptocurrency Trends Might Hurt Gaming Business

  • June 24, 2018

It's no secret that NVIDIA and Advanced Micro Devices, the only two manufacturers of high-performance graphics processors, saw their processors with a graphics processor grow thanks to a boom in cryptoisolation.

Because cryptoallocations such as Ethereum and ZCash, which were typically created by doing calculations on GPUs, have risen in price, so the demand for graphics processors can also be called. This production process is known as mining.

Nevertheless, in recent months the prices for cryptocurrencies have decreased, and specialized hardware has appeared to eliminate these cryptresources. This caused demand for graphics processors for crypto-currency calculations, so that they fell like the notorious rock.

According to a research note from BlueFin Research Partners, sales of NVIDIA-based graphics cards in North America in the second quarter of 2018 track "less than 50%" levels observed in the first quarter. For AMD, the situation looks even worse: this figure is reportedly only 35-40% of the level of the first quarter.

I suspect that the number of AMD that looks weaker than the NVIDIA number in this case is probably due to the fact that AMD graphics processors tend to be more capable of some types of crypto currency development than NVIDIA's. Perhaps this meant that a larger percentage of the total number of AMD graphics processors was accounted for by crypto-currency miners than by NVIDIA.

It is also worth noting that, despite the fact that AMD in its financial analysis report in 2017 announced that it would implement an expanded version of its current Vega architecture on the so-called production technology of 14 nm +, its more recent road maps do not include this product, meaning that it was canceled. This seems to indicate that AMD will not be able to respond to new products from Nvidia's Turing with new products this year. AMD can eventually resort to lowering the prices of its current Vega parts to continue using the parts in the gaming market, providing both revenue and profitability.

Finally, while AMD should release its new Navi architecture products in 2019, it should be borne in mind that Navi products will be manufactured using 7-nm technology. AMD and NVIDIA, at least in recent years, tend to switch to new production technologies at about the same time, so I suspect that by the time AMD comes out of Navi, NVIDIA will also be ready to release the parts after Turing, constructed using a 7-ananometer.