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[xbitlabs] AMD Will Receive $60 - $100 for Every SoC for Next-Gen Game Consoles - Financial Analysts. - Page 5

post #41 of 156
Quote:
Originally Posted by BinaryDemon View Post

it's likely MS and SONY would want to stick with an x86 APU in the future for backwards compatibility.

Both companies scraped backwards compatibility before though:
XBox (x86) => XBox 360 (POWER) => Xbox One (x86)
PS1 (MIPS) => PS2 (MIPS) => PS3 (POWER/Cell) => PS4 (x86)
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post #42 of 156
so people are saying that getting a contract for xboxone and ps4 will cause you to lose money ? , if nvidia had won these contracts would anyone be saying that they were going to lose money ? nividia had the contracts in the past, did they lose money ? (and they only supplied the gpu) . nividia was DROPPED as a supplier and they'er contract were not renewed with the new product lines coming out this year. so are they losing money because of this ?

very odd that you don't here these questions being brought up,

BTW , way to go AMD, thumb.gif
post #43 of 156
Thread Starter 
At least PlayStation 4 can emulate PS1/PS2 games biggrin.gif
post #44 of 156
Quote:
Originally Posted by DuckieHo View Post

Both companies scraped backwards compatibility before though:
XBox (x86) => XBox 360 (POWER) => Xbox One (x86)
PS1 (MIPS) => PS2 (MIPS) => PS3 (POWER/Cell) => PS4 (x86)

But all of those console had backwards compatibility - they did remove it years later (in the PS3's case by changing the disc drive for cost, not sure about the others), but I fondly remember playing mechassault on my 360.
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post #45 of 156
Bottom line: AMD is going to be making money from this. No one knows how much and we won't until AMD releases their end of year results to their investors. A competitor saying that their margins will be low? What proof does NVIDIA have of this? No one knows but AMD what was inside their contract. Amazing news for AMD and a big thumb.gif
post #46 of 156
Quote:
Originally Posted by Shimme View Post

But all of those console had backwards compatibility - they did remove it years later (in the PS3's case by changing the disc drive for cost, not sure about the others), but I fondly remember playing mechassault on my 360.

They only had partial backwards compatibility.... I assume through an emulator or compatibility layer.
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post #47 of 156
Quote:
Originally Posted by DuckieHo View Post

You are not considering in "economic costs". To produce APUs for MS/Sony, they have to shift staff, resources, and maybe supply from their other divisions.

I'm not too certain that it's that much of a strain. Why would a company make a decision to move parts, labor, resources etc from profitable parts to manufacture a chip that they will make no profit on? I'm pretty sure there must be enough parts and labor to handle this with no influence on their other product lines. I'm pretty sure you would hear almost immediately if AMD couldn't manufacture these parts and everything else they make. If they are hiring people specifically for this contract, that would tell me they are actually making money, because they certainly wouldn't add labor expense to a chip that they are already losing money on.

I really don't see how AMD loses money on these at all.
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post #48 of 156
Quote:
Originally Posted by DuckieHo View Post

They only had partial backwards compatibility.... I assume through an emulator or compatibility layer.
This is my guess as well. Could play NFL2k5 on 360, but not MVP2005 if my memory serves me right.
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post #49 of 156
Quote:
Originally Posted by ejb222 View Post

I'm not too certain that it's that much of a strain. Why would a company make a decision to move parts, labor, resources etc from profitable parts to manufacture a chip that they will make no profit on? I'm pretty sure there must be enough parts and labor to handle this with no influence on their other product lines. I'm pretty sure you would hear almost immediately if AMD couldn't manufacture these parts and everything else they make. If they are hiring people specifically for this contract, that would tell me they are actually making money, because they certainly wouldn't add labor expense to a chip that they are already losing money on.

I really don't see how AMD loses money on these at all.

The consoles are much more likely to be a way for AMD to get their tech and name out there, a long term investment, it's highly unlikely that they're in it for short term gain.

The real deal is getting more and more people supporting their tech and seeing the advantages.
 
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post #50 of 156
Oh and to everyone arguing about a 5$ profit margin you need to take a step back and realize that a $350 million dollar profit pre-tax is still a PROFIT. that means that if they were paid $60 per system sold that $55 of that was OVERHEAD. Their actual amount of cash flow would be 4,2 billion dollars based on the 350,000,000 profit from a $5 margin and the lowest end of the 60-100 dollar range per system. Cash flow is the name of the game gentlemen.
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