Alright, so picture this – Intel, the tech giant, goes head-to-head with AMD for the PlayStation 6 chip contract in 2022. Spoiler alert: Intel didn’t get it. And yep, that’s kind of a big deal.
What Happened?
Intel was fighting to get the contract to design and manufacture the chip for Sony’s next-gen console, the PlayStation 6. It’s not just about the money (even though, let's be real, we’re talking billions here). Intel wanted this win to boost its contract manufacturing business – a key part of CEO Pat Gelsinger’s master plan.
But nope, AMD swooped in and snagged the deal. Why? Well, word on the street says Intel and Sony couldn’t settle on the right price. Plus, backward compatibility – making sure PlayStation 6 can run older PS games – was a huge issue. Switching from AMD to Intel could’ve messed with that, and Sony wasn't about to risk it.
Intel's PlayStation 6 Dream Crushed
Losing out on this contract wasn’t just a missed chance to make a truckload of money. This was Intel’s shot to prove they’re serious about being a player in the foundry (chip-making) game. It would’ve filled their factories for five years and pumped up their contract manufacturing game. In fact, Intel could’ve made around $30 billion from this single deal. Yep, you read that right.
Instead, AMD got the bragging rights. They’ve already been making custom chips for Sony’s PlayStation 5, so it’s a natural continuation. Plus, AMD has experience delivering the goods, keeping Sony happy while making sure gamers can still fire up their old PS games on the new system. Smooth.
Intel’s Future Moves
With Intel facing big losses (we’re talking $7 billion in operating losses in just a quarter), they’re now looking for other ways to stay in the game. They’ve even started talking about cutting costs and selling off some business units. It’s tough out there, and missing this PlayStation 6 deal didn’t help.
Imagine, if Intel had won, their foundry business would’ve been set with a marquee client for years. But without it? They’re still scrambling to attract other big clients. Oh, and they’re planning layoffs to save $10 billion – because that’s how rough things have gotten.
Final Thoughts
Intel really wanted this. The PlayStation 6 deal could’ve been a massive win – a steady cash flow, a big name under their belt, and a chance to flex their foundry muscles. But instead, they’re left licking their wounds while AMD basks in the glory.
Intel still has a pipeline of customers, but missing out on the Sony contract feels like a pretty tough blow. For now, AMD stays the champ of console chips, while Intel goes back to the drawing board. Let’s see what their next move is.
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