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Intel’s Loss of the PlayStation 6 Chip Contract: A $30 Billion Missed Opportunity​

September 17, 2024eriHwBusters
Intel lost a crucial contract to design and manufacture the chip for Sony’s PlayStation 6 to AMD in 2022, a significant blow to the company’s ambitions in contract manufacturing. Intel’s push to secure the PlayStation 6 chip would have been a substantial victory for CEO Pat Gelsinger’s plan to revitalize Intel through its fledgling foundry business. According to insider sources, the contract, valued at an estimated $30 billion in revenue, slipped away due to disagreements over profit margins.

Intel's Loss of the PlayStation 6 Chip Contract: A $30 Billion Missed Opportunity - Hardware Busters

Hardware Busters - Intel's Loss of the PlayStation 6 Chip Contract: A $30 Billion Missed Opportunity - News

hwbusters.com

 

[RaZoR No1]

News - Business - Reuters: How Intel lost the Sony PlayStation business

Summary: Intel lost PlayStation 6 chip contract to AMD in 2022, sources say Dispute over profit margins blocked Intel-Sony deal, sources say PlayStation deal could have generated $30 billion in revenue, sources say SAN FRANCISCO, Sept 16 (Reuters) - Intel (INTC.O), lost out on a contract to...

www.neogaf.com

 

[bobbybabylon]

Intel incompetence again. Same thing happened to them in iPhone era. Going to two companies (propietary and pure play) is all that can save (TBTF) help them now.

 

[Bloobs]

 

[amigastar]

Well, at least they have Switch 2.
Edit: ah i mixed them with Nvidia

 

[West Texas CEO]

 

[Danny Dudekisser]

It's okay, everything else is going really great for Intel right now.

 

[SweetTooth]

Lots of USA big companies are falling apart, IBM, Intel, Boeing

End of an era

 

[GHG]

Well, at least they have Switch 2.

I thought that's nvidia?

 

[West Texas CEO]

Lots of USA big companies are falling apart, IBM, Intel, Boeing

End of an era

Why? Intel and Boeing, yes, but what's wrong with IBM?

 

[MMaRsu]

Been posted multiple times

 

[SweetTooth]

Why? Intel and Boeing, yes, but what's wrong with IBM?

They used have cutting edge excellent products, now they disappeared in the backend of US gov.
I have no idea what they are doing now.

 

[Unknown Soldier]

They used have cutting edge excellent products, now they disappeared in the backend of US gov.
I have no idea what they are doing now.

IBM is largely a consulting firm these days but they are profitable in the niche they have chosen for themselves

 

[sankt-Antonio]

IBM is largely a consulting firm these days but they are profitable in the niche they have chosen for themselves

I would say that still counts as falling apart if at one time they where a global powerhouse.

 

[Puscifer]

Lots of USA big companies are falling apart, IBM, Intel, Boeing

End of an era

When you're putting infinite growth ahead of everything it only makes sense.

 

[amigastar]

I thought that's nvidia?

Your Right, sorry my bad got them both mixed.

 

[crackajack]

Would definitely have been interesting if either of the three chose Intel and they actually would have needed to produce a decent APU. But maybe with the Steamdecks and all competitors around intel might design something for that space and steam machines or something similar might happen. We need intel to compete, to push AMD to finally make better APUs for PCs where the graphics part is actually worthwhile and not just okayish to start a game at min settings.

 

[HerjansEagleFeeder]

Thanks, my brain hurts now.

 

[FStubbs]

With Microsoft basically dead, I guess they'll have to work with Valve.

 

[Drew1440]

Why? Intel and Boeing, yes, but what's wrong with IBM?

They went full DEI




And PowerPC/Power is a dead end.

 

[Doctor Hades]

Although I am not a fan of AMD's graphics card on PC - NVIDIA charge more but they are worth it because they are two-steps ahead in terms of AI upscaling and RT - but I do like that the consoles are sticking with AMD because it ensures that backward compatibility is better supported, something that might not be so easily to keep if you switch to another manufacturer such as Intel or NVIDIA.

The only thing I don't like about AMD on consoles is their incredibly lacklustre FSR upscaling - it's bad enough on PC in my experience but far worse on consoles - which is no doubt why Sony have gone with their own PSSR solution for the upcoming PS5 Pro. Hopefully, PSSR will be refined and supported on PS6 so developers no longer have to resort to using FSR2/3 for future games.