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In a bid to capitalize on the growing popularity of gaming devices, Advanced Micro Devices Inc. (AMD - Analyst Report), recently launched a graphic processing unit (GPU) — AMD Radeon™ R9 270 — the latest addition to the AMD Radeon™ R9 Series GPUs.

The AMD Radeon R9 270 graphics card is ideal for users who need superior graphic performance for gaming. Powered by AMD Graphics Core Next (GCN) architecture, the new graphics card supports Mantle technology and provides strong graphics performance from web browsing to video editing.

Priced at $179, the graphics card includes 1,280 stream processing units, 2GB GDDR5 memory, up to 5.6 Gbps memory clock speed and 179.2 GB/s memory bandwidth. The card will also support the latest games at 1080p with high settings. Also, AMD’s GPUs support DirectX® 11.2, OpenGL 4.3 and Mantle, which give it the desired speed for optimal graphics solutions required in notebooks and desktops.

Additionally, AMD Radeon R9 270 graphics card features a new AMD TrueAudio technology, which gives enhanced sound effect for gamers through stereo headsets and speakers3. Consumers prefer an improved soundscape for gaming along with rich graphics. Thus, AMD’s revenues stand to benefit significantly if the latest GPU can cater to the rising demand of the users.

AMD’s processors have become highly popular among gaming console makers and have been used in Sony Corp’s (SNE - Snapshot Report) PlayStation 4 and Microsoft Corp.’s (MSFT - Analyst Report) new Xbox video game console, to be launched on Nov 22.

AMD has recently enhanced its focus on gaming. Both the next generation gaming consoles will feature AMD’s accelerated processing units (APUs), which will boost the company’s business. We believe that these wins have positioned AMD at the center of the console gaming industry and will lessen the company’s dependence on the declining personal computer market. It will possibly help the company to regain some of the lost market share from rivals like NVIDIA (NVDA - Analyst Report) and Intel (INTC - Analyst Report).

A report from IDC estimates that there will be 257 million active consoles worldwide by 2015. These estimates encourage companies like AMD to increase their stakes.

AMD is the world's second-largest maker of microprocessors. In the last reported quarter, AMD’s top-line numbers were better than its guidance, supported by the ramp up of semi-custom System-on-Chips, new products and strong mobile design wins. Also, the company’s bottom line beat the Zacks Consensus Estimate.

Currently, AMD holds a Zacks Rank #3 (Hold).

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