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AMD Will Receive $60 - $100 for Every SoC for Next-Gen Game Consoles - Financial Analyst

Advanced Micro Devices will receive from $60 to $100 per every next-generation video game system from Microsoft Corp. and Sony Corp. and will likely make quite a lot of money even in case the new PlayStation 4 and Xbox One game consoles will not be as successful as current-generation consoles.

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dadaownsall1547d ago

O.o... Sounds pretty good to me

nukeitall1546d ago

Hold your money!

What you have to ask is, what is the potential for profit? Revenue is sure to be high, but profit is what keeps the company a float!

The reason why MS choose IBM/ATI last generation, was because they outright own the design and can fab the chips at their chosen contractor.

There is a reason why nvidia is chasing a different business, because the profits are low something to the tune of less than half a billion over the life of PS3.

In the grand scheme of things that is miniscule compared to the resources put in.

Nvidia is a profitable company and AMD is well, NOT! In fact, it as a loss. I wouldn't necessary pin my hope on this.

ijust2good1547d ago

And Nvidia didnt wanna do business ahahaha. I bet there new portable SHIELD is gonna be a huge investment NOT. Nvidia could have made, huge profit from Sony and Microsoft. MS arleady paid 3 Billion to AMD to make them the chip. It didnt cost them anything. Nvidia should have gotten involved and made some profit, they certainly could make more money than that overpriced SHIELD nonesense.

MasterCornholio1546d ago

The only SOCs that Nvidia has are Tegra chips which are not as capable as the APUs that AMD are producing. This is the main reason why Sony and Microsoft chose AMD over NVIDIA because AMD can provide them with a chip that contains both a capable CPU and a capable GPU.

kwyjibo1547d ago

It's not that Nvidia didn't want the business, they couldn't have it.

Next-gen wanted a SoC that Nvidia just couldn't provide.

NameRemoved00171547d ago (Edited 1547d ago )

Sounds about right, they are supplying the cpu and gpu. I just hope console players understand AMD is nothing compared to intel/nvidia.

Intel i5: $220 or i7: $320
Nvidia GTX 770: $400 or GTX 780: $650 or AMD 7970 $400
Solid State drive: 500MBps or ramdisk: up to 10GBps
Standard PC supports up to 32gb ram

That is what your consoles are competing with.

Utalkin2me1547d ago (Edited 1547d ago )

My friend, i am all about the games. Specs is not what i am looking at, i am looking at games #1 then features that fit me #2.

aCasualGamer1547d ago

You expect consoles that'll launch with $499 pricepoint will be able to compete with a PC that costs $1000+ ?

You are crazy. But the PC question is mute without the great first party games.

I only game on PC for strategy games like Civ or Simcity, other than that... nah.

GameNameFame1547d ago

Rule of thumb for any closed system is that you get double the performance.

As Carmack said himself, you typically double performance.

Plus you add all the other chips PS4 has to off load work what PC normally have to deal with...

NameRemoved00171546d ago (Edited 1546d ago )

right now a PC you can build for $900-$1000 is double the performance of a PS4. It is not expensive at all anyone that thinks every PC gamer uses an alienware overpriced piece of shit is wrong. Also it makes up for it in game sales. I have $2500 worth of Pc games I spent only $600 total on all those games.

HammadTheBeast1547d ago

Ok.

For me it's not about 1337 specs, it's about easily playing a game with friends and enjoying time off.

PS4 makes it happen without the hassle. Sure, my PC runs games great, I love the unique LoL and DOTA 2 on it, along with the great MMO's but when I just want to chill and game, my PS3 covers it.

Master-H1547d ago (Edited 1547d ago )

see how much do all that sh*t cost and compare it to the price of "our consoles" , and don't get me started on exclusives

Merrill1547d ago

Shut up. I'm tired of PC elitist posting about their supposedly superior PC's specs and how consoles don't compete with them. Just shut up.

Consoles aren't competing with PC's, console sales of games DESTROY PC sales, obliterates them to be exact.

Consoles compete with each other for sales and specs, not with PC's.

I wish PC elitists weren't so goddamn insecure.

Corpser1547d ago

Lol Who is the one sounding insecure?

JsonHenry1547d ago

Actually that isn't true. Console sales of CoD destroy the PC sales. But PC sales and most importantly profit margins are much higher on the PC as a whole. You can say no all you want but it is true. And now the mobile space as crazy as it sounds is actually starting to compete with PC sales and bucking console sales right now as well.

You can talk about it being casual this, MMO that, RTS this but the truth is that PC and even mobile sales dwarf that of consoles. Why? Because more people own PCs and mobile devices than consoles.

Ju1547d ago

^^ You are living in dreamland. Profit margins are no different. Prices are usually lower which is an indicator that the only difference is the "publishing" fee payable to platform holders which you don't have on the PC.

Against those "savings" hold the factor of high piracy and lower sales in general. There is hardly a "PC" only publisher which exclusively publishes PC games. Some are niche games, but the big guns are in console business. Don't fool yourself.

windblowsagain1547d ago

You know what's funnier.

I'm maxing out GRID 2 On PC.

And GT5 still has a better lighting model. Better looking cars.

You can build the most expensive rig in the world.

But you cannot play PS3-PS4 games on it.

I use my PC everyday, but prices don't mean anything.

Intel and Nvidia have always been overpriced.

showtimefolks1547d ago

yeh because specs are everything? what people keep overlooking is consoles aren't meant to be used as PC's. Consoles are meant to do one thing above everything else and that's to play games

when i see gameplay footage of last of us i don't think to myself how much better could it look on a pc, all i say is wow looks stunning. so have fun playing on pc and we will have fun playing on consoles

i think next gen consoles will see most of the pc exclusives release on consoles too

jukins1547d ago

i just hope PC elitists understand that there top end high dollar specs are nothing compared to the games you'll miss out on.

its_JEFF1547d ago (Edited 1547d ago )

Thanks for coming in here and shitting all over AMD for no good reason.

I really don't understand why people feel the need to do that. Does is provide you with some kind of sick satisfaction to rain on someone's parade. And no, "Just saying" is not a good excuse... ever.

This is the same kind of people that spoil endings of games, WHY? why would you do that? Why would you spoil someones experience like that... SMH.

fr0sty1547d ago (Edited 1547d ago )

I hope hdshatter understands there isn't a PC on the market that has it's own custom APIs designed to give programmers direct access to the GPU hardware. There is no direct bus between the CPU and GPU. Both CPU and GPU have split memory pools, meaning that if the CPU and GPU both want to work on the same piece of data each has to make a copy of that data in it's local memory which takes precious time and creates a bottleneck. There is easily as much GDDR5 ram as you'll find on the most expensive GPUs today. Just a few of the optimizations you won't find in any PC. The base parts may not be anywhere near as strong as most modern PC parts, but the overall architecture is far better geared towards gaming. As such, you would have to build a PC that costs 2-3 times more than a PS4 to get the same level of performance out of it.

So, you PC elitists that like to blow $2,000 every 3 years to keep your rig "up to date" can keep on wasting your money. I'll enjoy better games at a close enough visual fidelity to what you will be enjoying to satisfy me, and I'll spend much less money doing it.

NioRide1547d ago

I'm not giving you a disagree because of your bash on consoles.

Personally I enjoy these new generations, it doesn't matter the side, loads of great games are to come.

But this idea that intel > AMD is just stupid, as both CPU/GPU compete well in the price ranges, Many times only a difference of 1-2fps. And very small amounts of difference performance wise.

Usually negligible.

NarooN1547d ago

Exactly. The AMD bashing in the tech community is just as, if not dumber than a lot of the console fanboy bashing (except this time, the X1 and Microsoft deserve the bashing, haha). I'm not about to spend an extra $100 just for hyper-threading, and get an extra 5 frames. It's silly. I've been using AMD CPU's (didn't start using their GPU's until last year) for years and haven't had any issues at all with gaming or A/V production.

ABizzel11547d ago

@hdshatter

You're a liar. Nothing you listed is in a standard pc or gaming pc. A standard gaming pc is exactly on par with what the ps4 and Xbox one offers. What you listed is a top-end pc that less than 1% of pc gamers have.

KwietStorm1547d ago

Lol christ there is always someone counting silicon. I bet you don't even use thermal paste. You just have a little alone time with your mobo every night and keep it fresh.

Mr_Writer851546d ago (Edited 1546d ago )

No they are not, do Nvida sell 140million plus of the same graphics card?

Do intel sell 140million i7s? To gamers?

The Xbox 360 and PS3 sold combined over 140million units, add the Wii and its 99millilon and the WiiU with its over 3million.

And I bet there are more consoles sold then any of the stuff you mentioned. Infact the amount of console owners blows PC gamers out of the water, so no.

That's not what they are fighting against. They are fighting for the casual/hardcore console gaming market, not the niche PC market.

Edit:

Just to show how small the PC market is Call of Duty MW3 is the best selling multoplatform game this gen. It sold 27.65 million combined on PS3 and 360.

It sold just 1.56 million on PC.

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One4U1547d ago

thats a shitload of moneh

fr0sty1547d ago

That's about $12,000,000,000 they're looking to make (assuming they make $60 each off of about 200 million units sold across PS4, Xbone, and Wii U's install base). All 3 current gen consoles will have crossed the 80 million sold mark soon, so that isn't too far fetched to think that the 3 combined next gen consoles will pass 200 million sold.

OpenGL1547d ago

They won't, $12 billion is more than 4x higher than AMD's entire market cap. The price per console will go down over the years, otherwise Sony/MS wouldn't have gone with AMD. Also the Wii U isn't using an AMD APU.

They can still make a lot of money of the PS4/Xbone though, even if it isn't close to $12 billion.

ABizzel11547d ago

Open gl is right, but I think he meant wii u is using amd gpu well technically ati.

zebramocha1547d ago

@OpenGL what does an API know about finance?
:)

Ju1547d ago

Price per console will go down and so will the cost to produce the chips. Most likely development cost of those chips will be recouped within a year (thinking that we are looking at about $1B in revenue per year, I'd rather think earlier than later). After that only manufacturing costs apply which considering these quantities will drop sharply. So, I'd think this is a gold mine for AMD.

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gamer421547d ago

It's official:
The winner of Next-Gen is AMD