News

AMD’s Deal With Xbox One Worth More Than $3 Billion

AMD is sitting pretty as they now power all three of the new consoles on the market. First they have the Nintendo Wii U, which contrary to common belief isn’t doing to bad in terms of sales, then we have the PlayStation 4 and Xbox One, both of which pack high end AMD APU’s, knocking Nvidia completely out of the next-gen console race.

Of course AMD didn’t do this out of the kindness of their heart, this is a business deal and one that looks set to generate more than $3 billion in revenue for them thanks to the deal they’ve penned with Microsoft.

Bob Feldstein, an ex AMD employee who defected to Nvidia let the details of the deal slip. It is however a muti-year deal and that should se AMD generate this revenue over a period of around 5 years, as right now AMD’s revenue is worth around $1 billion.

This isn’t easy money though as the profit margins in consoles suck pretty badly and large volume need to be generated, marketed and sold before real profits start to roll in, but if the long term strategy pays off for AMD it could give them the financial life line they’ve been needing.

Peter Donnell

As a child still in my 30's (but not for long), I spend my day combining my love of music and movies with a life-long passion for gaming, from arcade classics and retro consoles to the latest high-end PC and console games. So it's no wonder I write about tech and test the latest hardware while I enjoy my hobbies!

Disqus Comments Loading...

Recent Posts

Still Wakes the Deep 

LIVE THE HORROR: An immersive disaster story aboard a stunningly realised North Sea oil rig,…

23 mins ago

PHILIPS 275V8LA – 27 Inch QHD Monitor

The Philips VA LED display uses an advanced multi-domain vertical alignment technology that gives you…

23 mins ago

EPOMAKER Ajazz AK820 Pro 75% Gasket-mounted Mechanical Keyboard 

【TFT Screen: The Interactive Interface】This 75% mechanical keyboard comes equipped with a TFT Screen, serving…

24 mins ago

Funko Fusion

FANDOM FUSION Play as your favorite characters and wield their unique weapons and skills. Team…

25 mins ago

Shin Megami Tensei V: Vengeance Standard Edition

The Definitive Version of Shin Megami Tensei V - Fully evolved with stunning visuals for…

26 mins ago

Hand Warmers Rechargeable 2 Pack

【Unique Split Design】5200mAh hand warmers rechargeable together with double-sided heating function, split snap swivel design,…

28 mins ago