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Xbox One's AMD Deal Cost $3 Billion

Posted on Monday, May 27 @ 10:27:03 PST by Jonathan_Leack

AMD is single-handedly responsible for all three next-gen consoles. Although it's known for being cost-friendly to consumers, it drove a hard bargain with Microsoft for its Xbox One.

Former AMD Vice President Bob Feldstein has the following posted on his LinkedIn profile:

AMD provided a custom silicon solution to Microsoft for the Xbox One, a game console and entertainment device.

It adds:

This required the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, muti-year deals. This project is valued at $3+B.

Bob Feldstein now works at Nvidia, AMD's biggest competitor, who tried to strike a deal with Sony and Microsoft but was unsuccessful due to higher pricing. It is presently unknown how costly Sony's deal with AMD was, but it is reasonable to think it's even more than $3 billion given the PS4 has a more powerful GPU and what AMD has stated is the best physics processing of all three platforms.

Both the PS4 and Xbox One will utilize an eight-core processor with an integrated GPU. Both are presumed to be clocked at around 2.0GHz lending plenty of processing power for next-gen experiences.

Tags:   xbox one, microsoft, AMD

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