We recently announced that Intel missed a huge opportunity. The company was planning to produce millions of chips for Sony’s next-generation PlayStation 6 consoles. However, things didn’t go as planned for Intel and they lost the tender to their giant rival. So how did they manage to do this? Here is the story of the huge missed opportunity…
AMD Wins PlayStation 6 Chip Deal That Intel Lost
The deal to manufacture chips for Sony’s highly anticipated next-generation console, the PlayStation 6, was set to play a key role in the competition between Intel and AMD. Unfortunately, Intel could not reach an agreement on profit sharing after lengthy negotiations with Sony.
The amount of profit to be obtained from each chip caused the two companies to leave the table. Of course, the development dealt a major blow to Intel’s newly established chip manufacturing business expansion strategy. Because the deal would provide not only a financial gain for Intel, but also a prestigious position in the sector.
Supplying chips to one of the world’s best-selling game consoles, such as PlayStation, could be a great reference for the company’s chip manufacturing business. Considering Sony’s leadership in the console market, it was clear that billions of dollars in sales from PlayStation 6 would be a huge source of income for Intel.
In short, AMD did not miss this opportunity and took Intel’s place. Sony continues on its path by reaching an agreement with AMD for the chip production of PlayStation 6. AMD’s successful collaboration in previous generations will also have an impact on the performance of this new generation console.
Although there are no details yet, the console may come with a processor with AMD Zen 4 architecture. The processor, which is expected to come with 8 cores and 16 threads, is expected to reach clock speeds of 5GHz and above.
AMD has not only been with Sony, but also recently with the Xbox Series S/X consoles. In this sense, AMD has established a great dominance in the game console market. Again, AMD is leading the race in handheld consoles, which have been on the rise recently.
Analysts see the development as a setback for Intel’s growth plans for its chipmaking business, with Intel CEO Pat Gelsinger in particular seeing the chipmaking business as a key area for Intel’s future and the loss having a negative impact on the company’s long-term strategy.
How do you think Intel can make up for this loss? How will AMD chips in the PlayStation 6 make a difference in the gaming industry? You can leave your opinions in the comments section below.
