As the gaming world anticipates the next generation of consoles, new reports suggest that Sony has already made key decisions regarding the PlayStation 6 (PS6) hardware. According to Reuters, the competition to supply the central processing unit (CPU) for Sony’s future console came down to a battle between AMD and Intel. The report reveals that Sony has ultimately chosen AMD to power the next-generation console, bypassing Intel in the process. The decision underscores the evolving relationship between Sony and AMD, with backward compatibility and chip manufacturing logistics playing crucial roles in the decision-making process.
With the success of the PlayStation 5 (PS5) and the upcoming PS5 Pro, Sony is looking ahead to the PS6, ensuring that the console will be built on solid and future-proof hardware. According to the Reuters report, AMD and Intel were the two leading contenders to supply the chip for the PS6, while other companies like Broadcom were eliminated earlier in the competition.
The race between AMD and Intel was fierce, involving months of negotiations in 2022 between executives and engineers from both companies and Sony. Ultimately, AMD’s bid was more attractive due to the hardware continuity it could offer. AMD had already developed the custom chips for both the PS5 and PS5 Pro, giving it a significant edge. By sticking with AMD, Sony ensures backward compatibility with its existing console ecosystem, allowing future PlayStation 6 users to enjoy a seamless gaming experience with previous-generation titles.
Why Intel Lost the Deal
Despite Intel’s long-standing dominance in the computing industry, it reportedly failed to secure the PlayStation 6 contract for several reasons. First and foremost, profit-sharing disagreements between Intel and Sony were a significant stumbling block. As per the Reuters report, Intel was unable to reach an agreement with Sony regarding how much profit it would earn from each chip design. This was particularly important because the Taiwan Semiconductor Manufacturing Company (TSMC) would handle the actual chip manufacturing process.
Additionally, Intel has faced challenges in recent years, particularly in the competitive chip-making landscape. The company has struggled in several areas, including AI chip development, and its Raptor Lake CPUs have encountered performance issues that further damaged its standing. Intel’s chip division also reported substantial losses, amounting to $7 billion in 2022, while its next-gen chip plant in Ohio was delayed. Although Intel recently secured Microsoft as a customer for its 18A chip process, the company’s overall performance has been overshadowed by setbacks in manufacturing and development.
AMD’s Continued Dominance in Consoles
With Intel out of the running, AMD has solidified its position as the leading chip supplier for Sony’s gaming consoles. AMD’s existing relationship with Sony, coupled with the success of the RDNA architecture used in the PS5 and PS5 Pro, made it a natural choice for the PS6. AMD’s chips are manufactured by TSMC, which is recognized for its cutting-edge manufacturing processes, ensuring the next PlayStation will be built on robust, high-performance hardware.
One key factor in AMD’s favor is the company’s ability to offer backward compatibility—a feature that has become increasingly important in the console gaming industry. By maintaining compatibility with PS5 hardware, AMD ensures that Sony’s existing user base can transition smoothly to the PS6 without losing access to their favorite games or content.
Intel’s Struggles in the Chip Market
While Intel remains a formidable player in the chip industry, it has struggled to keep pace with competitors like AMD and Nvidia, especially in the AI chip market. AMD has also lagged behind Nvidia in flagship GPUs, but its strength lies in its data center products, which now account for over half of its revenue. Meanwhile, Intel has been relatively slow to capitalize on the growing demand for AI hardware, and its manufacturing processes have lagged behind those of TSMC and other competitors.
Intel’s financial troubles, including the 15,000 layoffs announced last year, have also impacted its ability to compete for major contracts. Securing the PlayStation 6 chip contract could have generated an estimated $30 billion in revenue for Intel, according to analysts. However, the company has faced significant obstacles in rebuilding its manufacturing capabilities and has been largely sidelined in the ongoing AI chip boom.
In response to the report, Intel issued a statement saying, “We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations.”
What’s Next for PlayStation 6?
Although there are no official announcements regarding the PlayStation 6 launch date, industry insiders believe that the next-gen console is likely several years away, possibly arriving around 2027 or later. In the meantime, Sony is focusing on the release of the PS5 Pro, expected to hit the market with a $700 price tag. This console will provide enhanced graphics and performance compared to the standard PS5, catering to gamers looking for a premium experience.
As for the PS6, the decision to go with AMD reflects a broader trend in the console industry, where hardware makers seek long-term partnerships with chip manufacturers to ensure continuity and performance improvements over time. With AMD at the helm once again, the future of PlayStation hardware looks promising, with gamers eagerly awaiting what’s next for the world’s most popular gaming console brand.
Sony’s decision to choose AMD over Intel for the PlayStation 6 highlights the importance of backward compatibility, cost-effective manufacturing, and performance in the competitive gaming industry. While Intel remains a dominant force in computing, its inability to secure this crucial contract signals broader challenges the company faces in the evolving chip market. With AMD leading the charge, Sony’s next console is poised to deliver cutting-edge performance and maintain compatibility with its existing ecosystem, ensuring a smooth transition for gamers.
