Intel was in the running to make the PlayStation 6 APU but lost out to AMD due to disputes over profit margins, report claims

pcgamer.com:

With the launch of the PlayStation 5 Pro, AMD continues to be the console chip maker of choice, and given its history with Sony, we've all expected that it will remain in place for the PS6. However, according to a new report, multiple processor companies competed for the chip contract, including Intel, which ultimately lost to AMD over disputes about profit margins.

The report in question comes from Reuters so it's not some random tech blogger who has said this, though naturally there aren't any named sources for the information. It's being claimed that AMD, Broadcom, Intel, and other chip companies all submitted bids for designing and manufacturing the processor that will power Sony's next-generation PlayStation console.

Given that AMD had the contract for the PlayStation 4, PS4 Pro, PS5, and the freshly announced PS5 Pro, you'd be forgiven for thinking that it was already a done deal that Team Red would be used again.

Well, it appears not, and a flurry of discussions between Sony and Intel were apparently held in 2022, with the goal being that not only would Intel design the chip, it would make them via its own foundries, rather than using TSMC.

If Intel had been successful in its bid, it would have provided a much-needed boost in revenue for the company. Reuters claims the deal would have been $30 billion over the period of the contract, requiring its chip factories to churn out thousands of silicon wafers every month.

In 2023 alone, Sony states that 20.8 million PlayStation 5 consoles were sold and every one of them sports an AMD all-in-one APU chip.

AMD doesn't break down its financials in enough detail to work out just how much money it makes from the Sony contract but in the same year, its gaming division enjoyed a revenue of $6.2 billion and the majority of that is the PS5 chip. However, its operating income was $0.9 billion which tells you everything you need to know about how big the profit margin is with console processors.

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