Whoa, you're right. AMD *is* screwed!
The real question is whether AMD is trying to use this to change gears or not. After all, the PS4 and XBone aren't going to be replaced for many years with something that might or might not be AMD so if they want to exit the performance market and enter the ... well, whatever they're trying to do with APUs and ARM like embedded and microservers and custom hybrids and whatnot then this would be the time. They've bagged the current generation fo consoles, exit stage right. They've been very quiet about any successor to FX-8350 and their server roadmap is more of the current Opterons so well... Kaveri is fine but it's nothing but the current Steamroller cores combined with GCN graphics, as a CPU it's no better than what's already here.
I guess we'll get another indication in two weeks when their Q3 earnings call comes out, the geek in me would like them to succeed but the economist sees very many big red blinkenlights in their last economic reports. People here like to point out how competitive their prices are but the reality is that AMD prices them the way they need to sell, they're losing money now but if they raise prices they lose sales and also lose money. Last time they were royally screwed and losing money they spun off their fabs and got huge external investors in GloFo, this time around they either stand or fall. They desperately need more profitable business and ordinarily I'd say Intel wouldn't squeeze them to bankruptcy but right now Intel is in a duel with ARM and if AMD is stuck in the crossfire, well....