Boston, MA 08/20/2014 (wallstreetpr) –Almost everyone knows that Advanced Micro Devices, Inc. (NYSE:AMD)’s customized chips are the ones running the latest gaming consoles on the market. Both Microsoft Corporation (NASDAQ:MSFT) and Sony Corp (ADR) (NYSE:SNE) use AMD’s chips in their next generation consoles namely Xbox One and PlayStation4. The devices have had widespread acceptance in the U.S. and their penetration in other markets is also great. Because of the success of PS4 and Xbox One, AMD draws fat royalties, and that just demonstrate how the company’s shift away from PC is bearing fruits or likely to bear good fruits in the long run.
PC market challenge
There have been concerns that Advanced Micro Devices, Inc. (NYSE:AMD) is falling behind rivals such as Intel Corporation (NASDAQ:INTC) in the PC market, which once was the main source of revenue. However, the decline in PC sales has not only authored revenue trouble for the companies, but they have also been looking to other opportunities besides PC and AMD appears to be getting many things right in that transition. The company has its focus on gaming consoles and non-traditional PC graphics market. As such, the troubles in the PC market are not likely to be a serious challenge in its top and bottom line once it completes the transition.
Nonetheless, Advanced Micro Devices, Inc. (NYSE:AMD) has a lot of work to do. It has not only posted losses in the recent quarters, but even the position of its current assets and total liabilities comes as a cause for concern. In the most recent reporting, the company revealed total liabilities in the neighborhood of $3.79 billion against $2.88 billion in current assets.
Not enough
Still, it needs to do more to grab a bigger market share in the gaming console market. Although its royalty partnership with Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) is a great one, that is not enough to ensure top line growth and bottom line improvement. As such, it needs to attract more players in the gaming console market to have its chips in their devices. Nonetheless, AMD is on the right path, and its turnaround is appears to be around the corner.
