AMD has reportedly secured PS6 chip development, beating out Intel

Intel and AMD were both in negotiations with Sony, but Intel could not come to an agreement with Sony on profit margins for the alleged $30 billion deal.

TJ Denzer

September 16, 2024 10:10 AM

Image via PlayStation

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The PlayStation 6 may be more than a few years off, but that doesn’t mean tech companies aren’t vying for the rights to make components for it right now. In fact, a recent report suggests that AMD has secured a contract valued at around $30 billion to make chips for the PS6. In doing so, AMD beat out Intel, which was closely competing with AMD for the project, but couldn’t not come to an agreement with Sony by the end of negotiations.

This report comes out of Reuters, who shared details of AMD’s supposed deal with Sony and Intel’s failed competitive vie for the right to develop the PlayStation 6’s APU. According to sources familiar with the business dealings, AMD and Intel ended up as the final two competitor suitors, which analysts have suggested would pull in billions of dollars as the firm picked by Sony would be on deck to produce chips for years to come. Unfortunately for Intel, the company could not come to an agreement on profit margins with Sony, which left AMD ready to return to work on the chip for PlayStation’s next generation.

AMD already had the honor of crafting the CPU and GPU of the PlayStation 5, and it seems likely to power the PS5 Pro as well. Meanwhile, Intel has seen no lack of competitive and financial woes that culminated in a surprise loss on revenue for its Q2 2024, as well as the announcement of a $10 billion cost reduction plan that is expected to affect around 15,000 employees. Simply put, things have looked rough and seem as though they’re continuing to look rough for Intel on the back of a string of bad news.

It will remain to be seen what’s actually under the hood of the PlayStation 6 as Sony or AMD confirm, but with forecasts set for about 2028 on when the console will arrive, it will likely be a while before we see specs. Nonetheless, stay tuned for further news and updates as they drop, right here at Shacknews.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.