Sony Contracts AMD for PlayStation 6 Chip, Prioritizes Backwards Compatibility
Source: Rueters
Sony has reportedly awarded a contract for the PlayStation 6’s chip to AMD, choosing the American semiconductor company due to their strong focus on backwards compatibility. This decision came after a competitive bidding process back in 2022 - that saw other major players like Broadcom & Intel eliminated from any consideration, according to sources cited by Reuters.
AMD designed the custom system on a chip (SoC) for both the PlayStation 5 and the upcoming PS5 Pro... So, they were heavily favored by Sony for the role in the development of the next-generation console, and no one is really too terribly surprised, but the reasons why did perk some ears up...
Reuters reported that Sony’s decision was largely influenced by the need to ensure a seamless transition for gamers, allowing them to continue enjoying their PlayStation 5 games on the new system. The primary concern for Sony appears to have been maintaining backward compat without incurring insane costs or diverting too many engineering resources for that part of the project. Transitioning from AMD to a different supplier, like Intel, would have risked compatibility issues... and most likely would have required a significant effort to overcome any unexpected technical hurdles.
This is a great thing too, because if the PS6 is anything like the PS5... Exclusives on the console will be hard to come by. All of this starts to make me wonder... Do we even NEED a PS6?
Add to that - concerns are growing that the PlayStation 6 could launch at a $700 price point, similar to the PS5 Pro. Paul Tassi of Forbes suggests that a $600 minimum price seems inevitable, reflecting the increase from the PS5’s base model launch price of $500. Tassi brought up a bunch of reasons, such as the inflation-adjusted cost of production, Sony's willingness to maintain a higher price due to less competition from Xbox, and a trend of increasing prices with each new console iteration- they all make a $700 launch price likely for the PS6. That's assuming: no disc drive, no pack-in game, and these days, who knows if it will even come with the power cord and controller... I kid, but...
With the console potentially releasing in 2028, it seems Sony may push the price higher than ever before, continuing its strategy of premium pricing amidst market dominance... When all the while, gamers that care for these types of experiences will more often than not be migrating to PC instead.
Also per Reuters, Intel had reportedly engaged in extensive discussions with Sony throughout 2022, including high-level meetings involving CEOs, engineers, and executives from both companies. However; a wide disagreement over Intel's profit share from each chip sold ultimately stalled negotiations, preventing a final deal from being reached.
An Intel spokesperson responded to Reuters’ reporting, stating:
Meanwhile... Sony, Broadcom, and AMD all declined to comment on the matter.
Keep in mind that according to those documents leaked during the ongoing court battle over Microsoft's acquisition of Activision Blizzard, Sony wasn't expected to launch its next-gen console, the PlayStation 6, until at least 2028. This timeline aligns w/Sony's strategy to maintain long-term support for the PlayStation 5, highlighting a continued focus on ensuring a smooth transition between console generations.
~Smash