Sony PlayStation 6 Contract: Intel’s Major Loss to AMD

Monday, 16 September 2024, 05:18

Sony's PlayStation 6 contract has been awarded to AMD, marking a pivotal moment in the tech landscape. Intel's setback from this lucrative deal could redefine competitive dynamics. With AMD stepping into this role, the future of gaming hardware might shift significantly.
Indiatimes
Sony PlayStation 6 Contract: Intel’s Major Loss to AMD

Intel Loses PlayStation 6 Chip Contract to AMD

Intel faced a significant setback in 2022 when it lost the contract to design and manufacture the chip for Sony's upcoming PlayStation 6. This loss signifies a critical blow to Intel's nascent contract manufacturing business. Reports suggest that this Western tech battle involved Pat Gelsinger's challenges at Intel, as they were eliminated by AMD after extensive negotiations that spanned profit margins.

Impact on Intel's Future

With a potential revenue of around $30 billion, this contract could have guaranteed Intel a steady operational stream for over five years, securing their foundry unit's purpose. Intel's ambitious plans for its 18A manufacturing process may face delays, as this loss comes during a phase marked by significant layoffs and reported losses.

Sony's Console Strategy

Although Sony has yet to announce the PlayStation 6, the company's latest console, the PlayStation 5 Pro, continues to see strong sales. It is essential to watch how the competitive landscape evolves as AMD steps into a pivotal role in the gaming industry.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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