As anticipation grows for the next PlayStation after the PS5 Pro, reports indicate that Sony has chosen AMD to provide the chipset for its future PlayStation 6. According to Reuters, the competition to secure this lucrative contract came down to AMD and Intel, with AMD ultimately winning the bid.

Sony’s decision was largely influenced by AMD's role in designing the chips for the PS5 and PS5 Pro, which would help maintain backward compatibility for the PlayStation 6. This choice followed months of detailed negotiations in 2022 between Sony’s executives and engineers, alongside Intel, over the chip development process.

Intel's bid reportedly hit a roadblock due to disagreements over profit-sharing, as Taiwan Semiconductor Manufacturing Co. (TSMC) would handle production.

Intel has faced several challenges recently, including delays in its Ohio chip plant and a $7 billion loss in its chip division last year. Although Intel secured Microsoft as a customer for its 18A chip process, setbacks like the delay in the Raptor Lake CPUs and struggles to capitalize on the AI chip boom have impacted the company’s competitive edge.

In contrast, while AMD has also lagged behind Nvidia in the AI chip market, its data center products now account for more than half of its sales. By merging its gaming graphics (RDNA) and data center technologies (CDNA) into a unified “UDNA,” AMD plans to strengthen its gaming division and offer scalable products at more affordable price points.

The report suggests that Intel stood to gain $30 billion in revenue from the deal, but challenges related to production and profitability stifled negotiations. Intel’s official comment on the matter stated, "We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations."