Difficulties in the Ryzen Kingdom? Report on a cut in the scope of production of AMD processors due to disappointing demand • HWzone

Are the ambitious prices given to the first Zen 4 desktop processors, along with increased pricing for the new motherboards, driving users away?

AMD’s first Zen 4 processors, from the Ryzen 7000 series, are an exciting technological marvel that has proven itself well within the framework of the reviews – but at a time when the economic uncertainty of most consumers is on a steep upward trend, even this may not be enough to guarantee success, and this is how it turns out despite The jump in performance The demand for those home processors is far from meeting the expectations of the chip developer from Sunnyvale.

According to a report on the website wccftech, which is allegedly based on official internal documents of the company, AMD had to inform their manufacturing partners about the reduction of the volume of mass production for the first four Ryzen 7000 processors due to too low demand – and all this happens after the preliminary announcement about it that the economic results for the third quarter of 2022 (to be revealed on November 1) will be less good than the original forecast.

On paper, AMD chose to keep prices similar to those of its previous generation at launch – but in the practical market situation, these are much higher prices than Ryzen 5000 prices, without an increase in the number of available cores

The entire PC market has been on a shrinking trend, not to mention falling, for almost a year now due to a somewhat unique combination of circumstances that includes the gradual end of the Corona epidemic and the return to normality in most countries of the world, the correction of the backlog of demand for hardware created as part of the peak of the global chip crisis, and rampant inflation that forces many to reconsider Any purchase for entertainment and pleasure that is not defined as mandatory – and this is a huge challenge for all technology companies that have some presence in the domestic market, but for AMD the situation may be unusually severe due to the unsuccessful timing of making the jump from the established AM4 platform to a completely new AM5 platform, which brings With it also a jump in the price of motherboards and the price of the accompanying DRAM (due to the support for DDR5 only).

The B650 and B650E boards are designed to make the new hardware platform that accompanies Ryzen 7000 popular and more affordable – but in the meantime, they are struggling to meet expectations with prices that are higher than the estimates, along with DDR5 memories that are not shrinking in price at a sufficient rate

If that’s not enough, in the coming weeks the effect of the launch of Intel’s new generation of Raptor Lake processors on the demand for Ryzen 7000 processors will also begin to become clear – when it seems that the blue side succeeds in providing a more significant performance improvement at the medium price levels and a better return for the financial investment, thanks to the continued reliance on a The LGA1700 with a wider range of motherboards and continued backward support for DDR4 memories are significantly cheaper.

Basic H610 boards and DDR4 memory may not be the perfect combination for Intel’s new Raptor Lake processors – but they’re there as an option when there’s no other choice, and could give the chipmaker a golden opportunity to take market share from its suddenly more expensive rival

Will the solution for AMD be in officially cutting the prices of the official recommended processors, or in accelerating the conversation around the X3D/V-Cache models of the new generation that could possibly give it back the performance crown at the higher price levels? Maybe a combination of the moves? We will continue to follow and update.