News PC Gaming Revenue Exploded to $5.74 Billion in 2021

[Admin]

In 2021, the PC gaming market became 25% more profitable compared to 2020. Driven mostly by gaming PCs, laptops, and microphone sales.

PC Gaming Revenue Exploded to $5.74 Billion in 2021 : Read more

 

[Endymio]

This article underscores a point I repeatedly make: even with this 25% increase in PC gaming hardware sales, the amount spent on GPUs by actual gamers is less than $1B/year. NVidia and AMD wouldn't get allotments on latest-generation fabs with a market that small, nor be able to devote the engineers necessary to develop new chips in a timely manner. By expanding their market to datacenters, AI research, and yes, even crypto-miners, they've quadrupled their revenue ... which means better, faster GPUs for all.

 

[TJ Hooker]

This article underscores a point I repeatedly make: even with this 25% increase in PC gaming hardware sales, the amount spent on GPUs by actual gamers is less than $1B/year. NVidia and AMD wouldn't get allotments on latest-generation fabs with a market that small, nor be able to devote the engineers necessary to develop new chips in a timely manner. By expanding their market to datacenters, AI research, and yes, even crypto-miners, they've quadrupled their revenue ... which means better, faster GPUs for all.

Where have you seen figures for total GPU revenue specifically for gamers? And when you say they they've quadrupled their revenue, when are you comparing that to (and are you referring to GPU revenue only)?

 

[Endymio]

Where have you seen figures for total GPU revenue specifically for gamers?

By this article, all PC gaming hardware combined is $5.7B. Assuming generously that a full 25% of that was spent on graphics cards, that puts the total cost of the GPUs within those graphics card at well under $1B.

And when you say they they've quadrupled their revenue, when are you comparing that to (and are you referring to GPU revenue only)?

I am again using generous estimates, of NVidia achieving only half its revenue from Ampere/data center, and only half of NVidia's GeForce revenue from mining. We know specifically from NVidia the first estimate is artificially low. The second estimate NVidia provides no direct guidance on, but it's almost certainly low as well.

 

[TheOtherOne]

Nothing to do with overpriced components, mainly GPUs and CPUs tho. And yes, a LOT of those "gaming" rigs are actually just "mining" rigs.

 

[spongiemaster]

This article underscores a point I repeatedly make: even with this 25% increase in PC gaming hardware sales, the amount spent on GPUs by actual gamers is less than $1B/year. NVidia and AMD wouldn't get allotments on latest-generation fabs with a market that small, nor be able to devote the engineers necessary to develop new chips in a timely manner. By expanding their market to datacenters, AI research, and yes, even crypto-miners, they've quadrupled their revenue ... which means better, faster GPUs for all.

Nvidia's gaming division generated $3.22 Billion in their last quarterly report. They're looking at over $12 billion for the previous fiscal year when q4 is reported. Clearly, retail GPU's are not getting tracked as gaming hardware in this report. Not a single mention of them in the article is inconceivable considering how crazy the market has been if they were actually tracked by this report. They're focusing on microphones and monitors over GPU's? Doubt it.

 

[Endymio]

Nvidia's gaming division generated $3.22 Billion in their last quarterly report.

Yes, a year-over increase of 42%, an enormous increase, especially as NVidia is not capturing the price differential between MSRP and actual sale price of graphics cards.

Clearly, retail GPU's are not getting tracked as gaming hardware in this report.

My assumption was that the report is tracking such, and the discrepancy in the two figures is due to NVidia's "gaming" division reporting sales for gaming and mining both.

 

[russell_john]

In 2021, the PC gaming market became 25% more profitable compared to 2020. Driven mostly by gaming PCs, laptops, and microphone sales.

PC Gaming Revenue Exploded to $5.74 Billion in 2021 : Read more

And this is why Sony will either start releasing games on PC or die a slow death as they leave billions on the table for all the others and especially Microsoft to snatch up .....

Once the chip shortages abate later this year the PC Market will really explode

 

[TJ Hooker]

According to Jon Peddie Research, the PC gaming hardware market was already $22B in 2020, and was expected to be ~$33B in 2021. https://www.tomshardware.com/news/pc-gaming-hardware-market-recovering-supply-improving-mid-2021

Given that NPD is reporting only $5.7B for 2021, they must be omitting a pretty big category (or categories) that would otherwise be considered "gaming hardware".

 

[TerryLaze]

Once the chip shortages abate later this year the PC Market will really explode

The chip shortages are part (or even mainly) due to human malware and so are the much higher sales in gaming, people saved a lot of money by not being able to leave home and dropped it into entertainment, for obvious reasons.
When chip shortages stop is also when increased sales will stop.

Or at least that's an just as likely possibility.