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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.

Cosplayers dressed as Spider-Man walk in front of the PlayStation stand at the Paris Games Week (PGW), a trade fair for video games in Paris, France, November 5, 2023. REUTERS/Claudia Greco/File Photo
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A sign is shown at the entrance to the headquarters of Intel Corporation in Santa Clara, California February 2, 2010.  REUTERS/Robert Galbraith/File Photo
An image about Intel lost the contract to make and fab a chip for Sony's next-generation PlayStation 6 in 2022

Overview

  • 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.