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[gamechup] AMD’s Xbox One Project Valued At Over $3 billion - Page 2

post #11 of 62
Quote:
Originally Posted by Alatar View Post

Asking profit margins is pretty much the only valid question here.

For all we know they might have made $2B or nothing. Most likely this is more about higher revenue and getting their product out there than about profits which again, are really low with consoles.


So what you are saying is IBM made little profits from the cell and 360 cpu?
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post #12 of 62
Glad AMD got this, it will surely help them
post #13 of 62
Quote:
Originally Posted by bencher View Post

So what you are saying is IBM made little profits from the cell and 360 cpu?

Didn't IBM pull out of Cell stating it wasn't a viable (read:profitable) route?
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post #14 of 62
Quote:
Originally Posted by Kane2207 View Post

Didn't IBM pull out of Cell stating it wasn't a viable (read:profitable) route?

That does not answer my question. I am pretty sure IBM made a whole lot of money from the cell, while Sony suffered all the loss.

My point is amd is not selling the ps3. Sony is....

How is it that AMD will not turn much profit?
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post #15 of 62
Quote:
Originally Posted by bencher View Post

That does not answer my question. I am pretty sure IBM made a whole lot of money from the cell, while Sony suffered all the loss.

My point is amd is not selling the ps3. Sony is....

How is it that AMD will not turn much profit?

AMDs profit is going to be based on whatever they're getting per bit of silicon, per console sold. Those figures haven't been disclosed.

All we actually know is AMD bid less on the tender than the next guy, and we don't know how much development, production and support is going to cost for the next 7-8 years.
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post #16 of 62
Quote:
Originally Posted by Kane2207 View Post

Didn't IBM pull out of Cell stating it wasn't a viable (read:profitable) route?

Its not like AMD spent millions extra on R&D for the chips in the X1 and PS4, these chips only have a tiny bit of custom work put into them. Its R&D that eat into margins, not production of the chips, so while AMD probably sold these for cheaper then their competitors offerings, they are still going to make a killing on margin.
post #17 of 62
Quote:
Originally Posted by vampirr View Post

http://www.gamechup.com/amd-xbox-one-project-cost/

This proves that guys from nVidia were mad... tongue.gif

And how many smartphones and tablets run an AMD SoC? Nvidia and AMD have simply gone in different directions.
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post #18 of 62
Quote:
Originally Posted by Kane2207 View Post

AMDs profit is going to be based on whatever they're getting per bit of silicon, per console sold. Those figures haven't been disclosed.

All we actually know is AMD bid less on the tender than the next guy, and we don't know how much development, production and support is going to cost for the next 7-8 years.

This is right only if the contract is conditional.

I assumed business is done just the same as how Samsung does business with Apple.

And all we know is AMD offered more for the buck.
Quote:
Originally Posted by W4nderer View Post

And how many smartphones and tablets run an AMD SoC? Nvidia and AMD have simply gone in different directions.
Its only a matter of time before AMD takes over that market, just as intel is entering it too.
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post #19 of 62
Quote:
Originally Posted by s-x View Post

Its not like AMD spent millions extra on R&D for the chips in the X1 and PS4, these chips only have a tiny bit of custom work put into them. Its R&D that eat into margins, not production of the chips, so while AMD probably sold these for cheaper then their competitors offerings, they are still going to make a killing on margin.

I'm not sure I understand your reasoning, didn't Nvidia go on record saying "it's not worth it", and that's based on inside information and experience in supplying old 7xxx chips for the PS3. I'm not sure why everyone thinks consoles are the Holy Grail, AMD/ATI have supplied chips for numerous consoles in the past and it hasn't stopped them from having serious financial difficulties.

What is key, is knowing the actual profit they make from each chip, not what they tendered for, and they haven't disclosed this information.
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post #20 of 62
It's easier to say "it's not worth it" them to say "we couldn't do it".
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