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Intel AMD PlayStation (Games) Sony

How Intel Lost the Sony PlayStation Business (reuters.com) 55

Intel lost a bid to design and manufacture Sony's PlayStation 6 chip in 2022, dealing a blow to its contract manufacturing business. The contract, worth potentially billions in revenue, went to rival AMD after Intel failed to agree on pricing with Sony, Reuters reported Monday.

Discussions between the companies spanned months and involved top executives. Intel's loss has hampered CEO Pat Gelsinger's turnaround strategy, which hinges on expanding the company's foundry operations. The PlayStation deal would have provided steady business for Intel's struggling manufacturing arm, which reported $7 billion in operating losses last quarter. Sony's need for backwards compatibility with older PlayStation models complicated Intel's bid, as AMD designed chips for previous console generations, the report adds.

Further reading:
Intel Foundry Achieves Major Milestones;
Intel Weighs Options Including Foundry Split To Stem Losses:
Intel's Money Woes Throw Biden Team's Chip Strategy Into Turmoil.
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How Intel Lost the Sony PlayStation Business

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  • Unsurprising (Score:4, Informative)

    by DrMrLordX ( 559371 ) on Monday September 16, 2024 @01:05PM (#64790825)

    Intel has never wanted the kind of margins they'd have to take to get console design wins. Their last console was the original Xbox. Plus they didn't even provide the graphics IP or hardware for that thing.

    Ironically, Intel's best shot at getting 18a chips in PS6 would have been for them to fab an AMD at their foundry (instead of TSMC). It doesn't seem like many of Intel's current design IP would be appropriate for PS6. Especially not their graphics.

    • Intel definitely wouldn't get the margins they want; but I'd be curious to know what (at the time of negotiation) they expected the Sony contract to be displacing that would necessarily be more profitable.

      If it were up to Intel it would be all enterprise customers shutting up and paying whatever Intel says they should for Xeons; along with some i7 and i9 parts in AMT-equipped thin and light laptops; but if they were chatting with Sony in 2022 Epyc Naples, Rome, and Milan would all have been launched alre
      • by AmiMoJo ( 196126 )

        Sony's requirements were probably that Intel's GPU be backward compatible with at least the PS5, to the extent that the OS could do any translation necessary to make older games work.

        AMD has a huge advantage there, since they have supplied GPUs for the PS4 and PS5 generations.

    • by vbdasc ( 146051 )

      Their last console was the original Xbox. Plus they didn't even provide the graphics IP or hardware for that thing.

      Intel strongarmed AMD out of the original Xbox project, which was supposed to use AMD CPUs and was developed with them. The chipset of the original Xbox was made by AMD too, but Intel could not tolerate having AMD under any form in the new console, and they renamed it to "nForce".

      AMD is not going to allow Intel to repeat that trick so easily. And yes, payback is a b!tch.

  • by jacks smirking reven ( 909048 ) on Monday September 16, 2024 @01:36PM (#64790921)

    From some things I have read is that AMDs team for customizing their chips for sorta-embedded applications is very mature compared to Intel and their integrated GPU has always been ahead of the pack.

    There's good reason both Sony and Microsoft have used Zen for their last 2 or 3 generations of consoles as well as the Steam Deck. The fact Intel was in the running at all is surprising and for it to fall strictly on price is a bit of a downer, they have to know they are the higher risk option and should price accordingly. Can't be the odd-man-out for decades and expect to get a premium for the type of project you'd be doing for effectively the first time.

    The fact they were being considered though may be a promising sign for the next generation Intel GPU's though.

    • by Luckyo ( 1726890 )

      It's not just integration, it's the underlying tech on their mainstream technology as well. We can see this in steamdeck style portable gaming PCs that are becoming relatively popular now. They feature a SOC that includes a CPU and a GPU, and where GPU must be both powerful enough to run games and energy efficient enough to last a couple of hours on that small battery while running games on full tilt.

      They're almost all variants on several different AMD SOCs. There was one major attempt at making intel based

    • They used AMD CPUs, but only the latest generation of consoles are using Zen (specifically Zen 2) CPUs. The prior generation consoles used Jaguar-based CPU cores. The generation before that both Sony and Microsoft were using CPU technology from IBM.

      AMD is a good fit because they can supply both the CPU and GPU technology and are willing to allow companies like Sony to customize those designs to suit their needs. It also lets them put it all on a single APU instead of having separate dies, which isn't nec
  • Sony is number one in every business metric, by far. Clickbait like this is just irresponsible.
  • it wasn't seen as long term profitable. IBM didn't make all that much on the Power PC line in the 360 or manufacturing the PS3 chips.

    I don't think anyone expected consoles to stay up in price like this. A PS4 or XBone was going for $300-$400 USD right at the PS5 launch and a PS5 is *still* $600. That gives AMD a lot of room to negotiate more profit for them. But if market forces still existed like they did in the PS 1/2/3 era the consoles would be selling for about $150-$200 now an AMD would get squeeze
    • Still $600? The PlayStation 5 looks to be $500 ($499 USD), while the PlayStation 5 Pro has been announced for $700 ($699 USD), unless you want a stand and optical drive then it goes up to ~$800.

      My observation is that it is not so much "market forces" but physics. The writing looks to be on the wall regarding the plateau of technological progression. Without technological progression to drive market forces, those "market forces" won't do much. Likely this is the impetuous behind the A.I. marketing "blitz"
  • Intel doesn't have a decent APU. AMD does.

    Second, Intel node is inferior to TSMC.

    In 2022 and before, AMD's commitment to Sony was hurting them since they had to create PS5 APU at razor thin margins instead of server CPUs at huge huge margins.

    Intel would have to make a CPU design for TSMC. Their GPU is already made at TSMC.

    Sony probably got Intel involved just to scare AMD and get a good price out of them. AMD surely must have cited a massive price for their APU since they lost so much making PS5 chips rathe

  • Short sighted (Score:4, Interesting)

    by nehumanuscrede ( 624750 ) on Monday September 16, 2024 @03:29PM (#64791177)

    If Sony would realize that simply mandating keyboard / mouse compatibility with every game created for their consoles, they would eviscerate the gaming PC market. Gamers could then connect either a keyboard / mouse or a controller ( user preference ) to play said game. Hell, would you even need to port games over to the PC market at all ?

    Yeah, I know. Some folks aren't satisfied unless they can run 840hz screens on a 15k monitor in full blown HDR with 7.1 Atmos Audio and smell-o-vision.
    ( You won't win over the enthusiast market )

    But, you would get a very large majority to ask themselves why they need to spend all the money and hassle on a Windows ( let's face it, -most- gaming PC's are Windows based, which is why I'm not including Microsoft in this. They won't cut off their own foot since they want to keep selling Windows machines ) box, with all the headache of Microsoft's mandatory updates, hardware compatibility, power draw, heat generation and driver issues that come with a typical gaming rig.

    I wouldn't even bother with games on the PC if I had the option to use a keyboard / mouse on my Playstation and all games were required to support it.

    • I don't see where mandating keyboard / mouse compatibility with every game would even budge the market.

      The keyboard and mouse are primarily productivity devices, with game controller being a secondary function. Some games benefit from the abundance of buttons on a keyboard, and some games benefit from the accuracy of a mouse over a joystick, but in many instances the keyboard and mouse is inferior to some alternative control method. PCs have long relied on additional apparatus to supplement the keyboard
  • passin on manufacvturing the OG iPhone chip, including Pat

    Well, here we are.

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