News IT business 07-04-2024 at 18:07 comment views icon

Sony PlayStation 4 saved AMD from bankruptcy — confession of a top manager «red team»

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Andrii Rusanov

News writer

Sony PlayStation 4 saved AMD from bankruptcy — confession of a top manager «red team»

Ten years ago, AMD was not doing too well. Analysts predicted that «red» would go bankrupt by 2020. In 2015, AMD reported a 10% decline in revenue due to the shrinking PC market.

But a contract with Sony to produce chips for the PlayStation 4 helped AMD avoid bankruptcy. At least, that’s what Renato Fragale, the head of AMD’s client gaming PC division, wrote in his summary on LinkedIn:

Sony PlayStation 4 врятувала AMD від банкрутства — зізнання топменеджера «червоної команди»

«… one of the most successful launches in AMD’s history, which helped AMD avoid bankruptcy».

Sony’s PS4 wasn’t the only console to use AMD’s chip at the time. Microsoft’s Xbox One was also powered by the company’s system logic. Yes, AMD’s profits would have been quite small, but Sony (and Microsoft) managed to sell millions of consoles with its chips.

One of the reasons why Microsoft is not mentioned in Fragale’s resume may be sales figures. To date, more than 117 million PS4s have been sold, while Microsoft has managed to sell only about 58 million Xbox One units, and at the time, analysts estimated that the latter had sold only 35 million.

Source: Wccftech


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