The 'crazy' decision is them slowly abandoning the PC gaming market which is where consumers get these cards, and focusing on the 'client' market to sell their 'Insight' datacenter/AI cards. I think the parent you are responding to isn't questioning why it is a bad 'make money now' profit decision but why it is a bad 'get people to use your system' decision.
"AMD’s client segment, mostly chips for PCs and laptops, rose 62% year over year to $1.46 billion in sales, thanks to recent chip launches.
Sales in AMD’s gaming segment, which includes “semi-custom” processors for Microsoft Xbox and Sony PlayStation consoles, fell 17%. "
* https://www.cnbc.com/2024/01/30/amd-earnings-report-q4-2024....