Amidst all the heavy blows Intel has suffered in recent months due to controversies and dwindling financial performance, Reuters reported that the Chipzilla had lost a massive $30 billion contract to build chips for Sony’s next-generation PlayStation 6 console back in 2022, to none other than its arch-rival and the chipmaker currently powering its PlayStation 5 consoles: AMD.
Intel Lost $30bn PS6 Chip Contract Due To Profit Disputes
Reuter’s sources say the bid for PS6’s processor was finalized to only two chipmakers, Intel and AMD. Winning this contract would’ve been extremely crucial for Intel as it began to open up its once-exclusive foundry business to other customers, but as we’ve seen by now, the reception has been rather limited, as TSMC continues to enjoy its dominance in leading edge manufacturing.
The failure of Intel’s bid stemmed from “a dispute” over its profit-sharing scheme with Sony, which made AMD the eventual winner of the bid once again, as Team Red will be designing the chip for its consoles for the third time in a row. Earlier entrants of the PS6 bid included Broadcom as well.
This, of course, is a huge blow to Intel’s foundry business – had it secured the contract back then, it should be able to weather the financial storm it currently finds itself in, if not outright avoiding it altogether. This also likely lost a good amount of potential customers for Team Blue, as the contract could be seen as a major victory over the AMD-TSMC combination that has been slowly eroding its market share at large in the past several years.
Pokdepinion: What could have been, right?
