AMD warns gaming revenue could drop over 20% as memory costs bite
AMD is flying high in AI and data centre, but its gaming side is looking a lot less comfy for the second half of 2026.
During AMD’s Q1 2026 financial update, the company reported record revenue from its data centre business. That part is very much the “AI money printer goes brrr” story. But on the consumer side, AMD warned that higher memory and component costs are starting to become a real problem.
According to AMD CFO Jean Hu, the company now expects gaming revenue in the second half of the year to fall by more than 20% compared with the first half. CEO Lisa Su also said AMD is preparing its business around those component pricing pressures.
Important context: AMD’s “gaming” segment is not just PC gamers buying Radeon cards. It also includes console-related business, because AMD provides chips for major consoles like PlayStation and Xbox. So when AMD talks about gaming revenue dropping, it likely reflects a mix of GPU demand and console platform dynamics.
For Malaysian and SEA gamers, this matters because our market usually feels hardware price pressure quite quickly. GPUs, gaming laptops, console stock, and even memory-heavy PC builds are mostly import-driven here. If upstream memory and component costs rise, local retailers on Shopee, Lazada, Low Yat-style PC shops, and official console channels may have less room for discounts.
To be clear, AMD has not announced any Malaysia-specific RM price increases from this report. But the warning is still relevant if you are planning a PC build, GPU upgrade, or console purchase later this year. If parts become more expensive globally, SEA buyers rarely get magically protected from that.
The console side is especially worth watching. Tom’s Hardware notes that Microsoft raised Xbox Series console prices twice last year, while Sony announced price hikes for new PS5 models in March. Sony also recently increased the price of refurbished PS5 Slim consoles by US$100. AMD’s softer gaming forecast could be connected to weaker demand after those price bumps, or it could be a signal that more pricing pressure is coming. Without console shipment numbers from Sony and Microsoft, we can’t say for sure.
There is one slightly less painful caveat. AMD’s overall client business is not collapsing in the same way, partly because commercial demand for Ryzen laptops helps offset weaker consumer demand. Basically, office and enterprise laptop demand may cushion AMD a bit, even if gamers are more price-sensitive.
The bigger picture is clear though: AI and data centres are where the money is right now. AMD expects its data centre CPU revenue to grow 70% year-on-year in Q2, driven by AI demand. So while gamers may be staring at pricier components, AMD as a company is still benefiting heavily from enterprise and AI spending.
For local PC gamers, the practical advice is simple: don’t panic-buy, but don’t assume prices will automatically drop later this year either. If you already have a decent rig, maybe tahan first and wait for actual Malaysia retail movement. But if you are planning a new build for competitive titles, streaming, or creator work, it may be smarter to track RAM, SSD, GPU, and laptop prices closely over the next few months.
The memory crunch is no longer just a background industry problem. If AMD is already baking a major gaming revenue decline into its forecast, gamers in Malaysia and SEA should pay attention before the price tags start getting spicy.
Source: Tom's Hardware
