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Thursday, 30 May 2013 09:32

AMD to coin in cash from console wins

Written by Nick Farrell

$60 to $100 per console according to analysts

AMD will receive from $60 to $100 per every next-generation video game system from Microsoft and Sony and will make quite a lot of dosh even if the new PlayStation 4 and Xbox One game consoles will not be as successful as current-generation consoles.

Mark Lipacis, an analyst with Jefferies & Co thinks that AMD will get from $60 to $100 for every accelerated processing unit containing eight x86 general-purpose cores as well as Radeon HD graphics engines designed for Microsoft Xbox One and Sony PlayStation 4.

He thinks that the average price of a console SoC will be between $60 and $80 while Hans Mosesmann is a little bit more optimistic and believes that the company will get from $60 to $90 per chip. Early figures suggested that AMD’s agreement with Microsoft to build chips for the upcoming gaming console could be work more than $3 billion.

Earlier this week a former company executive said that the deal is a significant step in the chip maker's efforts in creating a semi-custom silicon business. In the long run, this might be extremely good news for Globalfoundries as well, although for the time it’s not building the chips.

Also read:

AMD’s Xbox deal worth more than $3 billion

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