Intel may have inadvertently overlooked a substantial opportunity to supply its chips for use in Sony’s upcoming-generation gaming console. According to a recent report by Reuters, Intel may have lost out on a potential deal due to disagreements over revenue margins and concerns regarding backward compatibility.
AMD reportedly claims the PS6 contract following Intel’s rejection as the leading contender. This potential deal, had it been sealed by Intel and Sony, was poised to generate billions of dollars in revenue, according to two reliable sources consulted by Reuters.
A disagreement arose over how much revenue Intel was entitled to receive from each chip sold to Sony, hindering the company’s ability to determine a price with the Japanese electronics giant, according to two sources. A rival AMD outmaneuvered other contenders like Broadcom in an intense bidding process, ultimately emerging victorious alongside Intel as the last two bidders standing.
While prioritizing backward compatibility was a crucial consideration, this was also driven by Reuters’ requirements. With AMD having already manufactured the PS5’s custom chip, developing a backward-compatible solution for the PS6 becomes significantly less complex compared to the alternative of introducing a new chip from a specialized processor supplier.
A representative from Intel declined comment on the matter, stating that while they disagree with the characterization, they will not engage in discussions about current or prospective customers.
Our company has developed a robust and wholesome buyer pipeline across both our product and foundry business lines, with a sharp focus on innovation to meet customer demands.”
As speculation swirls online, whispers of the PS6’s features, release date, and capabilities continue to emerge. Sony recently unveiled the PS5 Pro, sparking surprise among gamers due to its substantial price tag. The spotlight is firmly fixed on the PlayStation’s path forward, following its massive console launch, with Microsoft poised to unveil a powerful challenger in the near term.
As whispers of a next-generation console spread, this solitary tidbit hints at a protracted journey of discovery, ultimately revealing the form and features of the anticipated PlayStation 6. One thing is clear: this appears to be a substantial triumph for AMD.
