Sony Chooses AMD for PlayStation 6 Chip Over Intel

Intel's failure to secure the PS6 contract highlights challenges in its turnaround strategy and backward compatibility concerns.

Intel lost a significant bid to AMD for designing and manufacturing the PlayStation 6 chip, a deal potentially worth $30 billion.
The decision was influenced by backward compatibility issues, as moving from AMD to Intel would have complicated support for older PlayStation games.
Negotiations between Intel and Sony in 2022 were prolonged, involving top executives and engineers from both companies.
Intel's insistence on higher profit margins per chip contributed to the breakdown of the deal with Sony.
The loss of the contract is a major setback for Intel's foundry business, which is struggling to attract major clients.