Sony Awards AMD PS6 Contract & Drops Intel

Sony Awards AMD PS6 Contract & Drops Intel

From DualShockers (Written by Abdullah Al-Tekreeti) on | OpenCritic

Intel's bad luck continues as it lost out on potential billions after Sony chooses AMD as manufacturer for the PlayStation 6's CPU, according to a Reuters report.

In 2022, Sony held talks with AMD, who produced the PS5's chips, and Intel, for the PS6's chip manufacturing contract.

Intel was reportedly hung up on its profit margin per chip sold to Sony, perhaps under the assumption that its new manufacturing foundries would be profitable—they weren't.

These foundries lost Intel nearly $7 billion in 2023 due to bad decisions and outsourcing.

These losses, although not the only reason, likely led to the company's tens of thousands of 2024 layoffs as it tried to reorient itself. CEO Pat Gelsinger said the tech giant won't break even till 2027.

AMD, on the other hand, offered Sony competitive prices that knocked Intel's straight out of the deal. While AMD's final price per chip might've been lower than what Intel would've preferred, their Sony contract guarantees millions of chips will be ordered when the PS6 comes out.

Intel refused to comment on the matter, saying "we strongly disagree with this characterization." There really is no saving face after losing out...