Sony Picks AMD Over Intel for the Chip in the Next-Gen PlayStation 6: Report

Sony is already looking beyond the upcoming $700 PS5 Pro, with plans for a future PlayStation 6. According to Reuters, the competition for the chip powering this next-gen console was fierce, ultimately coming down to AMD and Intel. Broadcom was eliminated early on, and AMD eventually secured the contract.

AMD Secures PlayStation 6 Chip Contract

Reuters reports that since AMD already produces chips for the PS5 and PS5 Pro, ensuring backward compatibility was crucial. This led to extensive discussions in 2022 between Sony and Intel executives and engineers.

However, Intel's proposal fell through due to disagreements over profit-sharing from each chip designed by Intel but manufactured by Taiwan Semiconductor Manufacturing Co (TSMC). Intel has faced several setbacks recently, including issues with its Raptor Lake CPUs and missing out on the AI chip boom.

The company also handed over some next-gen tech manufacturing to TSMC while trying to rebuild its capabilities. Last year, Intel's chipmaking division incurred $7 billion in losses, leading to 15,000 layoffs announced last month. Additionally, delays have plagued its new chip plant in Ohio, although it did secure Microsoft as a customer for its advanced 18A chip process.

AMD's Strategic Moves for the PS6

Despite trailing Nvidia in the AI chip market and flagship GPUs, AMD has seen significant growth in its data centre products, which now account for over half of its sales. In a recent interview, AMD executive Jack Huynh mentioned that the company is merging its RDNA gaming graphics and CNDA data centre efforts into a unified "UDNA." This strategy aims to scale gaming priorities at lower price points.

The potential deal with Sony could have generated $30 billion in revenue for Intel. However, an Intel spokesperson stated, "We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations."

Sony's decision to stick with AMD highlights the importance of maintaining consistency and compatibility across their gaming systems. As both companies continue to innovate in their respective fields, gamers can look forward to more advanced technology in future consoles.