Last Updated on October 1, 2024
↖ Intel Misses Out on Potential PlayStation 6 Deal Due to Profit Disputes
Intel appears to have missed a crucial opportunity to supply its chips for the upcoming PlayStation 6, according to a recent report from Reuters. The failure to secure this significant contract reportedly stems from disagreements over profit margins alongside concerns regarding backward compatibility with older games.
The article, released just yesterday, suggests that AMD has stepped in to take over the deal after Intel’s lead position was compromised. If Intel had successfully partnered with Sony for the PlayStation 6, it could have potentially generated billions in revenue, as pointed out by two sources cited in the report.
The Reuters report elaborates, stating that a disagreement concerning the profit that Intel would earn from each chip sold to Sony hindered their ability to finalize pricing agreements. Consequently, AMD emerged victorious in the bidding process, which saw other contenders, including Broadcom, eliminated, narrowing the competition to just Intel and AMD.
Furthermore, the emphasis on backward compatibility heavily influenced Sony’s decision. Given that AMD supplied the chip for the PlayStation 5, integrating backward compatibility for PS5 games into the PS6 would be considerably simpler compared to partnering with a different chip manufacturer for the new console generation.
An Intel spokesperson expressed disagreement with the portrayal in the report but refrained from commenting on ongoing or potential discussions with any clients. They emphasized that the company maintains a robust pipeline of customers across both product lines and foundry businesses, focusing on innovative solutions to meet client demands. As of now, neither Sony, Broadcom, nor AMD has provided a response to Reuters regarding these developments.
Currently, speculation and gossip surrounding the PlayStation 6 are rampant online. Sony has recently unveiled the PS5 Pro, which has drawn mixed reactions due to its high price point. As the gaming community anticipates the next major release in the PlayStation lineup, particularly with Microsoft paving the way for potentially groundbreaking console advancements, excitement continues to build for what the future holds.
This emerging narrative is just the beginning of what will likely be an extensive exploration of features and specifications for the PlayStation 6. One fact remains clear: AMD seems to have scored a significant victory in this round of competition.