Intel may have missed a major opportunity Game Console 6 The contract will see the company’s chips used in Sony’s next-generation game consoles. That’s a new report from Reuters, which says Intel may end up failing on the deal due to disagreements over margins and concerns about backward compatibility.
Reports published late yesterday quoted sources as saying that AMD took over the PS6 baggage after Intel was no longer the frontrunner. If Intel and Sony lock in the deal, revenue could reach billions of dollars, according to two Reuters sources.
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Reuters reported: “A dispute over how much profit Intel makes from each chip sold to the Japanese electronics giant has prevented Intel from reaching a settlement with Sony on price, according to two sources. Instead, rival AMD has used competitive bidding to The process eliminated other companies such as Broadcom (AVGO.O) until only Intel and AMD remained.”
Additionally, a focus on backwards compatibility also led to the decision, Reuters reported. Since AMD makes the PS5 chip, the ability for the PS6 to backward-compatible PS5 games will be much simpler than the alternative of another chipmaker stepping in to create a new PS6 chip.
An Intel spokesman told Reuters: “We strongly disagree with this characterization but do not comment on conversations with any current or potential customers. We have a very healthy customer pipeline in both our product and foundry businesses and we are focused on innovating to satisfy their demands. Neither Sony, Broadcom or AMD responded to Reuters by press time.
Rumors, speculation, and tidbits about the PS6 are currently all over the internet. Sony only recently released the PS5 Pro, and its high price shocked many potential buyers. There will certainly be eyes on the future of PlayStation and its next big new console release, especially since Microsoft has laid the groundwork for an impressive number of console releases in the near future.
This is just a small part of a long list of clues about the PlayStation 6’s final form. One thing is for sure: this appears to be a major win for AMD.
