Sony and Intel are said to be in talks over possible processor designs for the next PlayStation in early 2022. According to a report by Reuters news agency, the discussions about the PlayStation 6 processor involved company bosses, dozens of engineers and managers.
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Such talks are normal years before a new console is finalised and manufactured. Sony has just announced the PS5 Pro – so the PS6 can be expected in 2028. There were four years between the PS4 pro and the PS5.
AMD vs Intel
Rumor has it that AMD and Intel were the final two potential suppliers after extensive rounds of negotiations, with Broadcom also in the running. Ultimately, AMD is said to have outmaneuvered its rival Intel with lower prices. According to Reuters sources Intel insisted on margins that were very high and therefore the cost per chip was very high.
Traditionally, console processors have low margins. But doing business with them can be profitable as they bring billions of US dollars to the treasury over several years. PlayStation 4 and Xbox One helped AMD survive during difficult times with Bulldozer CPUs.
In the case of Intel, the PlayStation 6 could increase confidence in its own semi-custom development and chip contract manufacturing (Intel Foundry). Apart from AMD, Intel is also the only manufacturer that can supply x86 CPUs. This will simplify compatibility with the Playstation 5 and Playstation 4. For example, Nvidia can only design an ARM processor for Sony and is known for particularly high margins.
VisionOS 2, iPhone 16 and Presentation Training | TNBT PodcastMore pressure than 2022
However, in 2022, Intel Foundry had not yet fallen apart as a chip manufacturer, and Intel’s position also looked much better: for the full year, the company earned a net profit of eight billion US dollars and gross margins were still well over 40 percent. The latter has now fallen to 35.4 percent; in the last quarter alone, Intel suffered a net loss of $1.6 billion.
With production generation 18a, things are going to get better at the Intel foundry from late 2025. The manufacturer speaks of about a dozen external customers for the 18a process, but no one has yet publicly acknowledged the Intel foundry.
Meanwhile, Reuters quoted an Intel spokesperson in response to its report:
“We disagree with this representation, but will not comment on current or potential customer discussions. We have a very healthy customer pipeline across both our product and foundry businesses, and we remain fully focused on “innovating to meet their needs.”
(MMA)
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