Originally Posted by Serios
Originally Posted by Vagrant Storm
WE don't know for certain...there has been info accidentally leaked that made it sound Microsoft did that, but Sony has been sounding like they might be buying in batches.
Well, it would not be $2 billion. Even after they break even and all R&D is paid for they will have an overhead to produce the chips. So they might get $100 a chip but each chip might cost them $30-50 to create. I would not be surprised to find out they spent over a billion USD on this project in R&D. Just because it was familiar components doesn't mean anything. Every time Intel makes new CPU it is going to be "familiar", but that doesn't prevent tons of R&D dollars going into it
That doesn't make sense.
Intel most likely spends more with R&D(which gives the clear edge at this moment) on the process fabrication then on the chip design itself.
I don't think AMD spent billions of dollars with this project. There is nothing to indicate that. If the APU in the consoles was a totally new design(New CPU and GPU architectures) the you could think AMD spent billions on this project.
No way to really know until or if AMD release that information. Stuff adds up fast. I wouldn't be surprised to find out that just payroll of engineers to sit around and think on the project for six months ended up costing $250 million. Then when you add on setting up a new build process (we can't actually buy an APU that is like what is int he PS4), building a motherboard, making the BIOS/Firmware for it, paying any royalties out for things like sound and networking processors...hitting $1 billion was probably easy.
But hey...I suppose it was possible Sony asked, "Do you haven a APU we can use?" and AMD said, "Sure, here you go" and it was that easy. I can also see some of the R&D from the Xbox One and PS4 overlapping reducing total R&D costs as well, but I am sure a billion dollars is an easy R&D cost to hit in the hardware world. Heck, I was just part of a $2 million R&D project to implement a vended application with a team consisting of 4 people that spanned about 14 months. This stuff adds up fast. Plus there are all sorts of indirect costs...It isn't just R&D. It is paying for our office space, our secretaries, travel, testing, new software licensing, stinking lunches for management and company reps that some how totaled up to nearly $40,000...it is nuts. I never want to be a project manager.