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Next generation console technologies to excite consumers, increase semiconductor content

by Richard Gordon  |  June 24, 2013  |  Comments Off on Next generation console technologies to excite consumers, increase semiconductor content

These past couple of week have been an exciting time for gadget lovers, RAM sellers and semiconductor analysts. Two major events clash with Apple’s Worldwide Developer Conference (often home to new Mac and i-gadget reveals) banging heads with Electronic Entertainment Expo in Los Angeles, where Microsoft and Sony start the major push for their next-generation games consoles.

These are now effectively PCs for the living room, with Microsoft pushing TV integration and a Windows 8-like interface, while Sony has a cloud-gaming service up its sleeve. In semiconductor terms, these new consoles pack in plenty of silicon both coming with ATI processors and graphics chips. The PlayStation 4 has 8GB of 5500MHz GDDR5 RAM and the Xbox One offers 8GB of DDR3 RAM, plus even more components in the smart controllers and camera peripherals.

With both companies hoping to sell many millions of consoles, this will offer a further boost to the RAM market, which is already seeing a bounce in NAND and DRAM sales with Gartner’s latest semi revenue forecast (see “Semiconductor Forecast Database, Worldwide, 2Q13 Update“) showing a strong upside, hitting $320 billion this year, with further growth to come.

Gartner’s aggressive growth prediction of 32% DRAM revenue growth is being driven by smartphones, SSDs and tablets, the new consoles will help to overcome weakening PC sales and lower-specified, cheaper, mobile devices. Check out the DRAM forecast and supporting webinar for further insight and what our opinion is about the timing and magnitude of future industry cycles.

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Tags: apple  dram  iphone  mac  memory  microsoft  playstation-4  semiconductor-content  sony  xbox-one  

Richard Gordon
Research VP
14 years at Gartner
23 years IT industry

Richard Gordon is a research vice president in Gartner Research. He has worldwide responsibility for Gartner's Global IT Market Forecasting. Read Full Bio

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