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AMD's Xbox One Deal Valued at $3+ Billion USD

Bob Feldstein, the current VP of Technology Licensing at Nvidia, served as ATI's VP of Engineering and its VP of Strategic Development from 1994 until 2006 when AMD acquired the company. For the next seven years, he served as AMD's VP of Business Development, and then he joined Nvidia in July 2012. That said, he has some knowledge about what's going on inside AMD.

According to his LinkedIn profile, AMD's involvement with the Xbox One console is valued to be worth more than $3 billion USD. He also acknowledges that AMD has provided a custom silicon solution for Microsoft for the Xbox One, a game console and entertainment device cramming into "one" form factor.

"My involvement was focused on business management and supply agreement negotiations," he states. "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, multi-year deals. This project is valued at $3+B."

He also talks about the PlayStation 4 that was revealed to the public on February 20. Unfortunately, he doesn't provide any financial worth on the project, but he's less vague with the Sony console, and talks about the Jaguar cores and Radeon graphics.

"The Sony PlayStation game console is powered by a semi-custom AMD APU," he states. "This processor is a single-chip custom processor, with eight x86-64 AMD Jaguar CPU cores and a 1.84 TFLOPS next-gen AMD Radeon based graphics engine supported by 8 GB DDR5 memory. AMD silicon will be a key enabler for the next generation of gaming experiences through this partnership with Sony, who has built the largest installed base of game consoles in existence today."

If anything, the two posts clearly show that AMD is playing a big part in the next-generation console wave. The Nintendo Wii U isn't quite as AMD-focused, featuring an IBM PowerPC 750-based three-core Espresso" chip clocked at 1.2 GHz, and an AMD Radeon "Latte" 550 MHz GPU with a built-in eDRAM cache.

  • dexpedition
    Here is the price of the new Xbox One (around 300$) http://www.noshitshurlock.com/xbox-one-price-leaked/
    Reply
  • bustapr
    quite the PR the new VP of business developement of Nvidia is giving to his old company/main competitor.
    Reply
  • blubbey
    So the consoles are probably worth ~$5 billion or more to AMD then. That's massive, hopefully consumers will see the benefits in the coming years.
    Reply
  • The_Trutherizer
    @blubbey: it does not mean much for the consumer if AMD alone does well. AMD, NVidia and Intel and all the other cpu/gpu/apu manufacturers must do well for the consumer to benefit. The moment a big corporate smells the word 'monopoly' they raise their prices, innovation slows down and the consumer loses. That's just the way it works.
    Reply
  • cknobman
    @The_Trutherizer: Right now I care more about the value of my AMD stock than anything else. The next gen consoles meaning billions to AMD means the value of my AMD stock going up. :)
    Reply
  • yobobjm
    This is exactly what AMD needs right now. Good for them, I didn't want to see AMD go away.
    Reply
  • SchizoFrog
    It may be 'valued' at that, but value does not mean revenue and values can changes over night on a new forecast prediction. This also does not talk about profits. AMD has had billions of trade over the last few years but the key issue is that while it has had a massive turnover it has been losing money hand over fist. All this means nothing until the consoles are a huge success and AMD start putting some cash in the bank.
    Reply
  • Someone Somewhere
    Nice. Plus, given they are behind both of the two main consoles, even if one does poorly the other will likely do better.
    Let's hope they get back near Intel again. Because I'm sick of this more power, less performance irritation.
    Reply
  • blubbey
    10878925 said:
    @blubbey: it does not mean much for the consumer if AMD alone does well. AMD, NVidia and Intel and all the other cpu/gpu/apu manufacturers must do well for the consumer to benefit. The moment a big corporate smells the word 'monopoly' they raise their prices, innovation slows down and the consumer loses. That's just the way it works.

    Considering how big Intel are (much bigger than AMD) and that Nvidia are doing pretty well, I doubt this will mean AMD leaves both of them in the dust. This will not even be close to a monopoly, in fact Intel are much closer to one than AMD (anti-trust law suit because Intel were essentially paying manufacturers to choose them over AMD some time ago)... yeah. Not even close. AMD laid off about thousands of people last year or something so this is a good thing for you and I.
    Reply
  • greghome
    Buying ATI finally paid off, 6 billion gone, now 6 billion back in one go :)
    Reply