AMD plans to sell a scaled down version of the PlayStation 4 APU sans Sony's technology.
John Taylor, head of marketing for AMD's Global Business Units, recently told The Inquirer that the company plans to release a modified version of the Jaguar-based APU that's used in Sony's upcoming PlayStation 4. It will be a "cut down" version that won't feature Sony's proprietary technology. It also won't have the same number of cores or the same computing capability.
"Everything that Sony has shared in that single chip is AMD [intellectual property], but we have not built an APU quite like that for anyone else in the market," he said. "It is by far the most powerful APU we have built to date."
He said the PS4 APU leverages AMD technology that consumers will find in the company's A-Series of APUs slated to arrive later this year – its new third generation. But they won't have the same number of cores, or the sheer number of teraflops. This ability to take one architecture and customize it for various clients (AKA consumers, Sony, etc) is part of the company’s "flexible system on chip strategy".
The Inquirer makes an interesting observation. "Sony's decision to opt for AMD's x86 APU had left some commenting that the PlayStation 4 is merely a console made out of commodity hardware," the report states. "But given that AMD will be selling the commodity version of the chip minus Sony's technology, perhaps for the first time the industry can see just how much work console designers such as Sony, Microsoft and Nintendo do beyond the standard hardware available to consumers to squeeze out more performance."
So far the details surrounding the PlayStation 4's APU have only focused on AMD's portion of the joint venture. Taylor said in a blog last week that the PS4 is "the first announced design win based on semi-custom AMD APUs". It will have eight 64-bit x86 AMD Jaguar cores, and a next-generation Radeon GPU producing 1.84 Teraflops of computing power.
"The Graphics Processing Unit (GPU) has been enhanced in a number of ways, principally to allow for easier use of the GPU for general purpose computing (GPGPU) such as physics simulation," Sony said. "The GPU contains a unified array of 18 compute units, which collectively generate 1.84 Teraflops of processing power that can freely be applied to graphics, simulation tasks, or some mixture of the two."
Naturally the console maker didn't offer the ingredients to its special sauce used in the PlayStation 4's custom APU. That's OK Sony, we'll find out soon enough.

APU's aren't bad as workhorses. They outperform Intel in threaded workloads at their price point.
Desktop APUs are generally intended for low/mid-range PCs.
The PS4 APU has a quad-channel (256bits) GDDR5 memory controller, while the FM2 socket only has dual-channel DDR3 to work with which is about 1/5th as much RAM bandwidth as the PS4.
The current APUs are already memory-constrained at 2133MT/s so AMD cannot make their IGP much faster without going for 2400+MT/s DDR4, quad-channel or eDRAM of some sort.
Spend say $300 on combined Processor and GPU. Then $50 on case, $60 on HDD, $40 on RAM, and $50 on PSU.
Sony => went AMD
Microsoft => went AMD
Valve (SteamBox) => again AMDs APU
Now as far as CPU competition goes, in multithreaded apps AMDs CPUs tend to win.
How many cores is PS4 going to have? 8! Ouch. What are the chances that console ports will be able to utilize multiple cores on PCs as well? Very hich.
Now, even without this multi-threaded story, AMD's APUs wipe the floor with Intel's.
AMD is also used to smaller profit margins, than Intel. (when comparing CPU prices, don't forget to account for motherboard price difference).
* Throws wallet at screen.
APU's aren't bad as workhorses. They outperform Intel in threaded workloads at their price point.