540°

The Real Reasons Microsoft, Sony Chose AMD For The XBOX One And PS4

Forbes - It has been two weeks since E3, the world’s largest gaming show, and the final pieces of the game console puzzle are starting to come into place. The public knows what the XBOX One and the PlayStation 4 look like, what they will run, what they won’t, digital rights management and their price. Ironically, I have yet to read or hear exactly why Microsoft and Sony chose AMD silicon to power their new consoles and my goal here is to simply lay it out.

Death3971d ago

Interesting read. the SOC design was a huge factor. Nvidia was never an option since they refuse to scale their pricing with production costs over time. Nvidia and their pricing pretty much sent the original Xbox to an early grave.

kwyjibo3971d ago

If that were the case with Xbox, why did Sony go with Nvidia for the PS3?

As soon as you go x86 SoC, you have to go AMD. The interesting thing from the article is that they considered ARM though.

I didn't think ARM was anywhere near close enough to be considered.

hesido3971d ago (Edited 3971d ago )

Of note, Nvidia screwed Sony, contantly stating how unified shaders were not ready for mainstream and implied their DX9 cards will have separate vertex / pixel shaders, while AMD was working on Xenos. Months after PS3 release, they released their unified shader arcitechture gfx cards, which was kept under wraps, and would have been years in the making (as it was a major design change from previous cards)

kneon3971d ago

ARM was considered because it's the only viable CPU that Nvidia could get access to. If you want both the CPU and GPU on the same die your only real options are ARM/Nvidia, X86/AMD or X86/Intel. And you do want them on the same die to reduce costs and power consumption/heat output.

Of those 3 options the obvious choice is x86/AMD. Intel hasn't yet matched the graphics performance of AMD, though that looks to have improved quite a bit with Haswell. And games developers are more familiar with x86 so ARM is not the best choice.

But the Author doesn't seem to be very knowledgeable about software development. The actual CPU architecture is largely irrelevant for the kinds of apps he's talking about. It's the APIs and tools that determine the ease of development unless you need to get down to the bare metal, and that will typically only be games that need that level of optimization. The facebook, twitter etc apps will just use the high level APIs.

Mounce3970d ago

PS3 went with Nvidia and you have to think. That's why PS3 didn't get a price cut in particular at E3. It has been quite some time since the last price cut and they chose not to because the Cost of production, between the Cell and Nvidia were still incredibly present.

With this? That'd mean PS4 and Xbox One down the road of their lives can get easier price cuts compared to the current gen which was painful for both the consumer and the companies involved.

ProjectVulcan3970d ago (Edited 3970d ago )

This isn't some mystery.

AMD could provide an APU- a GPU + a CPU on the same package, with all the other bells and whistles at the best price.

Nobody else could deliver the whole package, either because they don't own the technology or they couldn't do it at the right price.

AMD also have a good track record with this sort of project which helps as well...

+ Show (1) more replyLast reply 3970d ago
wishingW3L3971d ago

because it was the cheapest option? AMD always offer better performance for the money than Nvidia but Intel CPUs utterly destroy AMD's CPUs.

ShwankyShpanky3971d ago

Funny, I've had Intel employees tell me different. They said it was Intel's production methods that give them the market edge, not the horsepower of the chips.

360ICE3971d ago

Intel promotes Intel.
Some questionable intel you've got there. Ha!

NarooN3971d ago

When it comes to the market share, it's because the average user has no idea about any differences between AMD and Intel. There were various cases of Intel bribing various OEM system vendors (like Dell) and consumer stores into not putting AMD chips into their products, and not selling AMD products in their stores. Google it, lol.

Nowadays, a lot of manufacturers are afraid to put AMD chips into their stuff out of fear that the average joe won't buy it because they see that fancy blue sticker on it. It's like how Bobcat destroyed Atom, yet people bought Atom-powered products anyway. Jaguar, the successor to the Bobcat design (and what is powering the CPU-side of the APU's in these systems) will further expand the performance and efficiency gains, but it won't matter since the vendors and manufacturers are too dumb to put them into more products.

In terms of production methods, I don't know what any Intel employee would mean by that besides efficiency of the chips, which is definitely a big factor in the mobile arena, but means nothing in the desktop sector. The truth is that desktop parts are NOT the main source of revenue for either AMD or Intel. Both companies are focusing more on Servers but moreso the mobile segments.

ShwankyShpanky3971d ago

@360ICE: Actually, I'd say that's more of a point against them than a "promotion." Basically admitted that AMD has better chips, but Intel can consistently crank out more of them.

The comment came from an Intel engineer when I was visiting one of their fabs.

@NarooN: By production methods they meant efficiency/quantity of actual chip production.

The Great Melon3971d ago

Intel is just years ahead everyone in the silicon industry with its fabrication methods. AMD is at the mercy of the tech that GlobalFoundries can currently produce.

ProjectVulcan3970d ago (Edited 3970d ago )

Theres nothing really 'wrong' with AMD central processors for desktops and laptops, honestly I wouldn't mind an AMD machine.

Fact of the matter is however they are inferior to Intel as a product. They aren't as fast, they aren't as power efficient or as cool.

They just aren't. Which is why they have to be sold for less money.

Intel have the edge because they are a much bigger company with a lot more money for R&D and thus also have the absolute bleeding edge manufacturing process, while AMD make do with older processes.

Intel as always months and sometimes years on the latest process before AMD.

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3971d ago Replies(2)
kewlkat0073971d ago

@wishingW3L

Can't disagree with that..I wonder what kind of power/muscle an Intel/Nvidia console collaboration would be like...

aquamala3971d ago

I didn't think there were reasons other than AMD submitted a lower bid

ginsunuva3971d ago

AMD also were already giving them CPU's. So they gave a package CPU/GPU deal.

o-Sunny-o3971d ago

Lower cost. I'm ready for PS4 like never before! ^~^

RandomDude6553971d ago (Edited 3971d ago )

Price/Performance and manufacturing.
Larrabee was considered-too hot/large for performance
Powervr 6 didn't hit performance target
Nvidia was too conservative with licensing fees.
Cell 2 wasn't getting shrunk and was off the roadmap.

Pretty simple choice actually

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270°

AMD gaming revenue declined massively year-over-year, CFO says the demand is 'weak'

Poor Xbox sales have affected AMD’S bottom line

Read Full Story >>
tweaktown.com
RonsonPL8d ago

Oh wow. How surprising! Nvidia overpriced their RTX cards by +100% and AMD instead of offering real competition, decided to join Nvidia in their greedy approach, while not having the same mindshare as Nvidia (sadly) does. The 7900 launch was a marketing disaster. All the reviews were made while the card was not worth the money at all, they lowered the price a bit later on, but not only not enough but also too late and out of "free marketing" window coming along with the new card generation release. Then the geniuses at AMD axed the high-end SKUs with increased cache etc, cause "nobody will buy expensive cards to play games" while Nvidia laughed at them selling their 2000€ 4090s.
Intel had all the mindshare among PC enthusiasts with their CPUs. All it took was a competetive product and good price (Ryzen 7000 series and especially 7800x3d) and guess what? AMD regained the market share in DYI PCs in no time! The same could've have happened with Radeon 5000, Radeon 6000 and Radeon 7000.
But meh. Why bother. Let's cancell high-end RDNA 4 and use the TSMC wafers for AI and then let the clueless "analysts" make their articles about "gaming demand dwingling".

I'm sure low-end, very overpriced and barely faster if not slower RDNA4 will turn things around. It will have AI and RT! Two things nobody asked for, especially not gamers who'd like to use the PC for what's most exciting about PC gaming (VR, high framerate gaming, hi-res gaming).
8000 series will be slow, overpriced and marketed based on its much improved RT/AI... and it will flop badly.
And there will be no sane conclusions made at AMD about that. There will be just one, insane: Gaming is not worth catering to. Let's go into AI/RT instead, what could go wrong..."

Crows908d ago

What would you say would be the correct pricing for new cards?

Very insightful post!

RonsonPL7d ago

That's a complicated question. Depends on what you mean. The pricing at the release date or the pricing planned ahead. They couldn't just suddenly end up in a situation where their existing stock of 6000 cards is suddenly unsellable, but if it was properly rolled out, the prices should be where they were while PC gaming industry was healthy. I recognize the arguments about inflation, higher power draw and PCB/BOM costs, more expensive wafers from TSMC etc. but still, PC gaming needs some sanity to exist and be healthy. Past few years were very unhealthy and dangerous to whole PC gaming. AMD should recognize this market is very good for them as they have advantage in software for gaming and other markets while attractive short term, may be just too difficult to compete at. AI is the modern day gold rush and Nvidia and Intel can easily out-spend AMD on R&D. Meanwhile gaming is tricky for newcomers and Nvidia doesn't seem to care that much about gaming anymore. So I would argue that it should be in AMDs interest to even sell some Radeon SKUs at zero profit, just to prevent the PC gaming from collapsing. Cards like 6400 and 6500 should never exist at their prices. This tier was traditionally "office only" and priced at 50$ in early 2000s. Then we have Radeons 7600 which is not really 6-tier card. Those were traditionally quite performant cards based on wider than 128-bit memory bus. Also 8GB is screaming "low end". So I'd say the 7600 should've been available at below 200$ (+taxes etc.) as soon as possible, at least for some cheaper SKUs.For faster cards, the situation is bad for AMD, because people spending like $400+ are usually fairly knowledgable and demanding. While personally I don't see any value in upscallers and RT for 400-700$ cards, the fact is that especially DLSS is a valuable feature for potential buyers. Therefore, even 7800 and 7900 cards should be significantly cheaper than they currently are. People knew what they were paying for when buying Radeon 9700, 9800, X800, 4870 etc. They were getting gaming experience truly unlike console or low-end PC gaming. By all means, let's have expensive AMD cards for even above $1000, but first, AMD needs to show value. Make the product attractive. PS5 consoles can be bought at 400$. If AMD offers just a slightly better upscalled image on the 400$ GPU, or their 900$ GPU cannot even push 3x as many fps compared to cheap consoles, the pricing acts like cancer on PC gaming. And poor old PC gaming can endure only so much.

MrCrimson7d ago

I appreciate your rant sir, but it has very little to do with gpus. It is the fact that the PS5 and Xbox are in end cycle before a refresh.

RonsonPL7d ago

Yes, but also no. AMD let their PC GPU marketshare to shrink by a lot (and accidentally helped the whole market shrink in general due to bad value of PC GPUs over the years) and while their console business may be important here, I'd still argue their profits from GPU division could've been much better if not for mismanagement.

bababooiy7d ago

This is something many have argued over the last few years when it comes to AMD. The days of them selling their cards at a slight discount while having a similar offering are over. Its not just a matter of poor drivers anymore, they are behind on everything.

Tody_za7d ago (Edited 7d ago )

Great post. I went for a Nvidia RTX 3060Ti which was insane value for money when I look at the fidelity and frame rates I can push in most games including new releases. Can't justify spending 3 times what my card cost at the time to get marginal better returns or the big sell of "ray tracing", which is a nice to have feature but hardly essential given what it costs to maintain.

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8d ago Replies(1)
KwietStorm_BLM8d ago

Well that's gonna happen when you don't really try. I want to support AMD so badly and give Nvidia some actual competition but they don't very much seem interested in challenging, by their own accord. I been waiting for them to attack the GPU segment the same way they took over CPU, but they just seem so content with handing Nvidia the market year after year, and it's happening again this year with their cancelled high end card.

MrCrimson7d ago

I think you're going to see almost zero interest from AMD or Nvidia on the gaming GPU market. They are all in on AI.

RhinoGamer888d ago

No Executive bonuses then...right?

enkiduxiv7d ago

What are smoking? Got to layoff your way to those bonuses. Fire 500 employees right before Christmas. That should get you there.

Tapani7d ago (Edited 7d ago )

Well, if you are 48% down in Q4 in your Gaming sector as they are, which in absolute money terms is north of 500M USD, then you are not likely to get at least your quarterly STI, but can be applicable for annual STI. The LTI may be something you are still eligible for, such as RSUs or other equity and benefits, especially if they are based on the company total result rather than your unit. All depends on your contract and AMD's reward system.

MrCrimson7d ago

Lisa Su took AMD from bankruptcy to one of the best semiconductor companies on the planet. AMD from 2 dollars a share to 147. She can take whatever she wants.

Tapani7d ago

You are not wrong about what she did for AMD and that is remarkable. However, MNCs' Rewards schemes do not work like "take whatever you want, because you performed well in the past".

darksky8d ago

AMD prcied their cards thinking that they will sell out just like in the mining craze. I suspect reality has hit home when they realized most gamers cannot afford to spend over $500 for a gpu.

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100°

Make your next GPU upgrade AMD as these latest-gen Radeon cards receive a special promotion

AMD has long been the best value option if you're looking for a new GPU. Now even their latest Radeon RX 7000 series is getting cheaper.

Father__Merrin18d ago

Best for the money is the Arc cards

just_looken18d ago

In the past yes but last gen amd has gotten cheaper and there new cards are on the horizon making 6k even cheaper.

The arc cards are no longer made by intel but asus/asrock has some the next line battlemage is coming out prices tbd.

Do to the longer software development its always best to go amd over intel if its not to much more money even though intel is a strong gpu i own 2/4 card versions.

270°

AMD FSR 3.1 Announced at GDC 2024, FSR 3 Available and Upcoming in 40 Games

Last September, we unleashed AMD FidelityFX™ Super Resolution 3 (FSR 3)1 on the gaming world, delivering massive FPS improvements in supported games.

Read Full Story >>
community.amd.com
Eonjay49d ago (Edited 49d ago )

So to put 2 and 2 together... FSR 3.1 is releasing later this year and the launch game to support it is Rachet and Clank: Rift Apart. In Sony's DevNet documentation it shows Rachet and Clank: Rift Apart as the example for PSSR. PS5 Pro also launches later this year... but there is something else coming too: AMD RDNA 4 Cards (The very same technology thats in the Pro). So, PSSR is either FSR 3.1 or its a direct collaboration with AMD for that builds on FSR 3.1. Somehow they are related. I think PSSR is FSR 3.1 with the bonus of AI... now lets see if RDNA 4 cards also include an AI block.

More details:
FSR 3.1 fixes Frame Generation
If you have a 30 series RTX card you can now use DLSS3 with FSR Frame Generation (No 40 Series required!)
Its Available on all Cards (we assume it will come to console)
Fixes Temporal stability

MrDead48d ago

I've been using a mod that allows dlss frame gen on my 3080 it works on all rtx series. It'll be good not to rely on mods for the future.

darksky47d ago

The mods avaiable are actually using FSR3 frame gen but with DLSS or FSR2 upscaling.

Babadook747d ago (Edited 47d ago )

I think that the leaks about the 5 Pro would debunk the notion that the two (FSR 3.1 and PSSR) are the same technology. PSSR is a Sony technology.

MrDead48d ago (Edited 48d ago )

I wonder how much they fixed the ghosting in dark areas as Nvidia are leaving them in the dust with image quality. Still good that they are improving in big leaps, I'll have to see when the RTX5000 series is released who I go with... at the moment the RTX5000's are sounding like monsters.

just_looken48d ago

Did you see the dell leaks were they are trying to cool cards using over 1k watts of power.

We are going to need 220 lines for next gen pcs lol

MrDead48d ago

That's crazy! Sounds like heating my house won't be a problem next winter.

porkChop47d ago

As much as I hate supporting Nvidia, AMD just doesn't even try to compete. Their whole business model is to beat Nvidia purely on price. But I'd rather pay for better performance and better features. AMD also doesn't even try to innovate. They just follow Nvidia's lead and make their own version of whatever Nvidia is doing. But they're always 1 or 2 generations behind when it comes to those software/driver innovations, so Nvidia is always miles ahead in quality and performance.

MrDead47d ago

I do a lot of work on photoshop so an Intel Nvidia set up has been the got to because of performance edge, more expensive but far more stable too. Intel also have the edge over AMD processors with better load distribution on the cores, less spikes and jitters. When you're working large format you don't want lag or spikes when you're editing or drawing.

I do think AMD has improved massively though and whist I don't think they threaten Nvidia on the tech side they do make very well priced cards and processors for the power. I'm probably going with a 5080 or 5090 but AMD will get a little side look from me, which is a first in a long time... but like you said they are a generation or two behind at the moment.

Goosejuice47d ago

While I can't argue for amd gpu, they aren't bad but they aren't great either. The cpu for amd have great. I would argue the 7800x3d as one of the best cpu for gaming right now. Idk about editing so I take ur word for that but gaming amd cpu is a great option these days.

porkChop46d ago

@Goosejuice

I have a 7800X3D. It certainly is great for gaming. Though for video editing, rendering, etc, I think Intel have the advantage from what I remember. I just mean from a GPU standpoint I can't support them.