Intel Fails to Make PlayStation 6 Chip Deal
Reuters reported that Intel has failed to reach an agreement with Sony to supply chips for the upcoming PlayStation 6.
According to sources familiar with the matter, Intel has been in negotiations with Sony for several months during 2022 with the aim of designing electronic components for the PlayStation 6.
The deal would have been a significant step for Intel, as it would have ensured the continuity of its manufacturing facilities for at least five years, and the expected revenue from the contract was estimated at $30 billion.
The failure comes at a time when Intel is seeking to expand its chip manufacturing business based on external contracts, and to win major customers that can support the operation of its factories.
Instead, Sony has chosen rival AMD to design the chips for the PlayStation 6, further strengthening the collaboration that has existed between the two companies since the launch of the PlayStation 4.
AMD will design the chips, while TSMC will do the actual manufacturing, according to a chip manufacturing model that separates chip design from manufacturing.
Reports indicated that Intel was unable to resolve key issues with Sony, particularly regarding revenue sharing between the two companies. In addition, there was a compatibility issue with previous PlayStation games, which would have required Intel to invest heavily in developing a processor that could meet Sony's requirements, and these issues prevented the two companies from reaching an agreement.
A contract to manufacture PlayStation 6 chips could have been a big boost for Intel, but talks with Sony fell through over financial terms and technical requirements.
Reports indicate that the PlayStation 6 could be launched by the end of 2027, after Sony recently announced the PlayStation 5 Pro .
This loss, in addition to other challenges, increases the difficulties facing Intel's leadership, especially in light of the company's recent losses, estimated at billions of dollars in the manufacturing sector, which prompted the company's management to consider the possibility of reorganization, selling some assets , and laying off a large percentage of its employees .