It is no secret that gaming {hardware} has been getting dearer this yr, so it should not be stunning that individuals 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 yr, 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. This 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% yr over yr, making $3.8 billion. AMD’s processors have been making their manner into extra trendy laptops, particularly within the price range vary, and whereas the corporate’s earnings report does not lay out precisely which merchandise had been promoting, it isn’t exhausting to think about that quite a bit of this progress 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 flourishing. The corporate raked in $11.5 billion in income final quarter, which is up 51% over this time final yr, pushed largely by AI. AMD’s knowledge heart enterprise introduced in $6.7 billion final quarter, which is a large 107% improve over final yr. So, although {hardware} is dearer and tougher to even receive, AMD is bringing in more cash than ever earlier than.
It is seemingly that the gaming enterprise will proceed to shrink over the following yr or so, whereas AMD cashes in on the AI growth. Particularly now that the Xbox Collection X formally went up in value and each Group Inexperienced and Group Purple reportedly plan to lift costs on gaming {hardware}, it actually does look like gaming {hardware} goes to proceed to fall down the listing of AMD and Nvidia’s priorities.
Jackie Thomas is the {Hardware} and Shopping for Guides Editor at IGN and the PC parts queen. You possibly can comply with her @Jackiecobra