AMD started a competition there, where they aren't well positioned to win any more, now that Intel has caught up.
When AMD split their chips into CCDs and IODs for a far more efficient way to produce a large range of desktop and server chips, that obviously caught Intel offguard.
But that flexibility was lost on the APU side, where AMD for the longest time and almost systematically today only has a single physical die.
Sure, producing different designs in different process sizes has given them some leeway, but they still basically don't have a response to Intel's far more fine-grained mix-and-match chips cookery. And they surely can't just multiply their engineering teams to match Intel's size.
Intel can now produce a vast variety of product across a giant range of performance, efficiency and price points, most of which won't actually be necessary, but bargain hunting consumers just revel in choices, little matter if they are meaningful or not. And it's worst case when Intel can claim the top performer in each variant.
AMD will only be able to hit a few of these spots and for lack of 50% performance gaps in any of those main categories of performance, efficiency or price), vendors will most likely go with an Intel design that allows them to cover the entire range. With so many (somewhat artificially inflated) choices to deal from Intel, where is the motivation and gain to deal with AMD offers? AMD just can't afford contra revenues like team Blue to bribe vendors.
Unless AMD has a Foveros 2 hidden in their labs, I am afraid that AMD's only choice is to go with design much like Apples M series, APUs that can be aggregated in S, M, L using 1/2/4 APU slices with fixed core, GPU, cache and RAM channel allocations. I'd still want one external RAM channel allowed for CPU RAM expansion, though, because I can rarely have enough RAM.
P.S. I am also worried that consoler makers are eying Intel with far more interest today...