Intel Loses Out on Sony PS6 Contract, AMD Wins

Intel‘s bad luck continues as it lost out on potential billions after Sony chooses AMD as manufacturer for the PlayStation 6’s CPU, according to a Reuters report.

In 2022, Sony held talks with AMD, who produced the PS5’s chips, and Intel, for the PS6’s chip manufacturing contract.

Intel was reportedly hung up on its profit margin per chip sold to Sony, perhaps under the assumption that its new manufacturing foundries would be profitable—they weren’t.

These foundries lost Intel nearly $7 billion in 2023 due to bad decisions and outsourcing.

These losses, although not the only reason, likely led to the company’s tens of thousands of 2024 layoffs as it tried to reorient itself. CEO Pat Gelsinger said the tech giant won’t break even till 2027.

AMD, on the other hand, offered Sony competitive prices that knocked Intel’s straight out of the deal. While AMD’s final price per chip might’ve been lower than what Intel would’ve preferred, their Sony contract guarantees millions of chips will be ordered when the PS6 comes out.

Intel refused to comment on the matter, saying “we strongly disagree with this characterization.” There really is no saving face after losing out on potential billions as your company bleeds revenue and employees.

Forget The PS5 Pro, We Want The PS6

Since last week’s PS5 Pro reveal, Sony has beenthoroughly cooked by PlayStation fans online.

Players have complained that the PS5 Pro delivers marginal graphical and framerate boosts that don’t justify its $700 price tag.

Ironically, in their PS5 vs. PS5 Pro comparison video, Sony inadvertently criticized their older console for its inferior graphics and performance.

As fans denounce the price tag and the barely noticeable improvements, they turn their eyes to Sony’s next big project, the rumored PS6.

It’s only been four years since the PS5 was released, and with Sony’s regular 7-year console life cycle, we might be looking at a 2027 release date.

Previous Microsoft and Sony documents have suggested 2027, or 2028 conservatively, as a possible start to the next generation of consoles.

What’s concerning is Sony’s latest price tag philosophy. While the PS5 retailed for $499.99 at launch, the PS5 Pro debacle is cause for worry.

If the global economy keeps going haywire, there won’t be more than a select few on the PS6’s servers.

Sony’s leading this console generation, though arguably as much for their effort as Xbox‘s faults, but it remains to be seen what their future holds.

Who knows, the next console generation could see Xbox regain the supremacy it held back in the 360-PS3 days. However, with Xbox’s recent blunders, I’m not sure what’s more likely.

As for Intel, 2027 will either be the year they finally break even and become profitable, or the year they look at Sony and AMD raking in cash while they continue to hemorrhage.