Intel reportedly loses PlayStation 6 contract to AMD

Intel has reportedly lost its chance to power Sony’s next-generation PlayStation

Reuters has reported that Intel lost their chance to become Sony’s hardware partner for PlayStation 6 in 2022. This loss resulted in AMD retaining its PlayStation console contract, ensuring that the PS6 will be powered by AMD hardware.

Since Intel now produces x86 CPUs and discrete GPUs, it is the only real alternative to AMD when it comes to producing high-end console CPUs/GPUs. Since Intel also has its own leading-edge foundry business, it could also replace TSMC in chip manufacturing. As such, Intel could replace AMD and TSMC to produce high-end silicon for Sony’s PlayStation 6 console.

According to Reuter’s sources, Intel was not happy with the margins Sony offered for its PlayStation 6 deal. The deal reported could reportedly generate $30 billion in revenue for Intel over the course of the console generation. However, using Intel over AMD would place Sony at risk of backwards compatibility challenges with their next-generation console. Beyond that, Intel is relatively new to the discrete GPU market, another factor that puts Sony at risk.

(Sony revealed their AMD-powered PlayStation 5 Pro last week)

Sony reportedly chose AMD to power their next-generation console in 2022. This gives Sony a long time to influence the development of AMD’s future CPUs and GPUs. After all, Sony will want specific hardware capabilities for its next-generation PlayStation.

Sony has recently claimed that they “motivated” AMD to develop “new advanced” ray tracing for PlayStation 5 Pro. Sony clearly has an influence on AMD’s hardware roadmap, and that will extend to PlayStation 6.

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