Sony reportedly picked AMD over Intel for the PS6

What’s subsequent after the PS5 Professional? A report from Reuters focuses on Sony’s plans past this fall’s new $700 system, saying that the battle to win a contract for the chip powering a future PlayStation 6 got here right down to AMD vs. Intel, with others like Broadcom eradicated earlier, with AMD ultimately successful out.

Based on Reuters, since AMD makes the chip within the PS5 and PS5 Professional, sustaining backward compatibility in a doable transfer was a part of “months” of discussions in 2022 between executives and engineers at Sony and Intel. Nonetheless, Intel’s bid was blocked as a result of they couldn’t agree on how a lot revenue Intel would make from every chip it could design as Taiwan Semiconductor Manufacturing Co (TSMC) dealt with the manufacturing course of.

Apart from the current embarrassment of crashing Raptor Lake CPUs, Intel has been a bystander within the AI chip growth and ceded manufacturing of some next-gen tech to TSMC because it makes an attempt to rebuild its capabilities. The chipmaking division additionally racked up $7 billion in losses final 12 months, and final month, the corporate introduced 15,000 layoffs. In the meantime, its upcoming chip plant in Ohio has been delayed, though it did safe Microsoft as a buyer for its superior 18A chip course of.

Whereas AMD has additionally trailed Nvidia’s management within the AI chip market and flagship GPUs, its knowledge heart merchandise now make up over half of its gross sales. In a current interview, AMD exec Jack Huynh stated that apart from merging its RDNA gaming graphics and CNDA knowledge heart efforts right into a single “UDNA,” with its gaming precedence set to growing scale at cheaper price factors.

The report says a deal might’ve produced $30 billion in income for Intel, which is quoted within the article saying, “We strongly disagree with this characterization however aren’t going to remark about any present or potential buyer conversations.”