Sony to Equip PlayStation 6 with AMD Chip Instead of Intel
Sony's upcoming PlayStation 6 console will feature an AMD chip instead of an Intel processor.
TroibNews 
Intel's unsuccessful bid for the chip contract for Sony's PlayStation 6 in 2022 significantly hindered its efforts to develop its emerging contract manufacturing sector, as informed sources told Reuters.
Sony typically depends on experienced design contractors for its system processors. Currently, custom chips from AMD power Sony's gaming consoles.
Historically, Sony consoles sell over 100 million units within five years. This could have potentially generated around $30 billion for Intel's contract manufacturing business, which currently faces challenges in attracting new major clients that it can publicly discuss.
According to two sources, discussions faltered over disagreements regarding the profit margin Intel expected to earn from each chip sold to the Japanese electronics giant, preventing an agreement on pricing with Sony.
After missing out on the initial surge of the AI boom led by Nvidia and AMD, Intel reported disappointing second-quarter results in August. The company announced intentions to reduce its workforce by 15 percent to achieve $10 billion in savings and is expected to lower its capital expenditures on factory expansion, which had previously been a key element of its foundry strategy.
Regarding Reuters' reporting on the PlayStation 6 negotiations and Intel's loss of the opportunity, an Intel spokesperson stated, "We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations. We have a very healthy customer pipeline across both our product and foundry business, and we are squarely focused on innovating to meet their needs."
Sony and Broadcom did not provide comments when approached, and AMD declined to respond.
Max Fischer contributed to this report for TROIB News
Sony typically depends on experienced design contractors for its system processors. Currently, custom chips from AMD power Sony's gaming consoles.
Historically, Sony consoles sell over 100 million units within five years. This could have potentially generated around $30 billion for Intel's contract manufacturing business, which currently faces challenges in attracting new major clients that it can publicly discuss.
According to two sources, discussions faltered over disagreements regarding the profit margin Intel expected to earn from each chip sold to the Japanese electronics giant, preventing an agreement on pricing with Sony.
After missing out on the initial surge of the AI boom led by Nvidia and AMD, Intel reported disappointing second-quarter results in August. The company announced intentions to reduce its workforce by 15 percent to achieve $10 billion in savings and is expected to lower its capital expenditures on factory expansion, which had previously been a key element of its foundry strategy.
Regarding Reuters' reporting on the PlayStation 6 negotiations and Intel's loss of the opportunity, an Intel spokesperson stated, "We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations. We have a very healthy customer pipeline across both our product and foundry business, and we are squarely focused on innovating to meet their needs."
Sony and Broadcom did not provide comments when approached, and AMD declined to respond.
Max Fischer contributed to this report for TROIB News
