Intel may have missed an important PlayStation 6 The contract would have seen the company’s chips used in Sony’s next-generation gaming console. That’s according to a new report from Reuters, which says Intel may have ultimately lost the deal due to disagreements over profit margins and concerns about backward compatibility.
Reports published late yesterday cited sources saying that AMD took over the PS6 order after Intel was no longer in the lead. According to two sources from Reuters, if Intel and Sony reach an agreement, the deal would bring in billions of dollars in revenue.
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Reuters reported: “A dispute between Intel and Sony over the profit per chip prevented Intel from reaching a price agreement, according to two sources. Instead, rival Advanced Micro Devices won the contract through a competitive bidding process that eliminated companies such as Broadcom (AVGO.O) and left only Intel and AMD.”
In addition, Reuters said that the emphasis on backward compatibility also led to this decision. Since AMD manufactured the PS5 chip, the ability of the PS6 to be backward compatible with PS5 games will be much simpler than the alternative situation (that is, another chip manufacturer stepped in to manufacture new PS6 chips).
An Intel spokesperson told Reuters: “We strongly dispute this assertion, but we do not comment on conversations with any current or potential customers. We have a very healthy customer pipeline for both our product and foundry businesses, and we are focused on innovating to meet their needs.” Sony, Broadcom and AMD did not respond to Reuters’ requests for comment by press time.
Rumors, speculation, and gossip about the PS6 are all over the internet right now. Sony only recently announced the PS5 Pro, and its high price has shocked many potential buyers. People are of course paying attention to the future of PlayStation and its next big new console, especially since Microsoft has already laid the groundwork for an impressive console that could be released in the near future.
This is just a few of the many clues that reveal what form the PlayStation 6 will ultimately take. One thing is for sure; this looks to be a major win for AMD.
