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AMD announces its withdrawal from the enthusiast GPU market

AMD has confirmed what many already anticipated: the company does not plan to release a new video card that will directly compete with NVIDIA's flagship models. However, AMD is not giving up on the PC graphics accelerator market, but will focus its efforts on expanding its market share by launching products with a competitive price-performance ratio.

According to the statements of Paul Alcorn, the leader of the Computing and Graphics Business Group division, with the release of the next generation of graphics cards based on the RDNA 4 architecture, AMD will direct its strategy to the mainstream and performance segment, where it aims to compete with NVIDIA based on the price ratio -performance.

Basically, AMD aims to repeat the success of the Radeon RX 5000 series, based on the original RDNA architecture, which, although it did not surpass the performance of NVIDIA rivals at the time, managed to attract users due to its efficiency and favorable price.

AMD announces its withdrawal from the enthusiast GPU market

AMD's decision not to enter the competition for the enthusiast segment, which is dominated by NVIDIA's high-performance solutions adapted for AI computing, could be beneficial in the long run. Graphics cards in this category have small profit margins relative to high development and production costs, and the low volume of sales for these “halo” products makes the financial risk considerable.

Currently, AMD only has 12% of the discrete gaming GPU market, which requires a change to get back on the upswing.

Reading between the lines, it is suggested that the new RDNA 4 series of chips will be optimized for the most efficient cost-performance ratio by reducing the physical size of the chips produced by partner TSMC. AMD could also improve performance in areas where it has fallen behind, such as Ray Tracing, and perfect its own alternative to DLSS technology, essential to closing the gap with NVIDIA's products in the same price range.

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