What’s next after PS5 Pro? A report comes from Reuters Focusing on Sony’s plans beyond the launch of a new $700 system this fall, it said the battle to win the future PlayStation 6 chip contract will ultimately be between AMD and Intel, with other vendors such as Broadcom being eliminated earlier, and AMD ultimately winning.
according to ReutersSince AMD produces the chip in the PS5 and PS5 Pro, maintaining backward compatibility is part of discussions between Sony and Intel executives and engineers for “months” in 2022. However, Intel’s bid was blocked because they could not agree on how much profit Intel would make from each chip it designed, with the manufacturing process being handled by TSMC.
Aside from the recent embarrassment of the Raptor Lake CPU debacle, Intel has been a bystander to the AI chip boom and has ceded manufacturing of some next-generation technology to TSMC while trying to rebuild its capabilities. The chip manufacturing unit also lost $7 billion last year, and last month the company announced 15,000 layoffs. At the same time, its upcoming chip factory in Ohio has also been delayed, although it did secure Microsoft as a customer of its advanced 18A chip process.
Although AMD also lags behind Nvidia’s leadership in the artificial intelligence chip market and flagship GPUs, its data center products now account for more than half of its sales. AMD executive Jack Huynh said in a recent interview that in addition to merging the work of RDNA gaming graphics cards and CNDA data centers into a “UDNA”, AMD’s gaming priority is to expand scale at a lower price.
The report said the deal could bring Intel $30 billion in revenue, and Intel was quoted in the article as saying, “We strongly disagree with this characterization but will not comment on any current or potential customer conversations.”