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AMD-Microsoft deal for Xbox One cost over $3 billion

Monday, 27 May 2013 17:41 GMT By Debabrata Nath

An ex AMD employee has revealed that the deal between AMD and Microsoft for the Xbox One is worth more than $3 billion.

Bob Feldstein, currently the VP Technology Licensing at Nvidia, has revealed this via a post on his LinkedIn profile. He also states that AMD provided a custom silicon solution to Microsoft for the Xbox One, and it has signed a multi-year deal with the giant.

“AMD provided a custom silicon solution to Microsoft for the Xbox One, a game console and entertainment device. This required the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, muti-year deals. This project is valued at $3+B.”

$3 billion might seem like a lot of money but Microsoft plans to sell anywhere between 400 million and 1 billion Xbox one units during its lifetime and therefore it shouldn’t be taken as a surprise that it’s decided to invest big bucks for developing a robust system.

AMD has also provided key components for both Sony and Nintendo’s next-gen consoles: Wii U and PlayStation 4.

Thanks, Gamechup.

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26 Comments

  1. ps3fanboy

    when the xbone fail, and it will trust me. that deal will be worth nothing.

    #1 2 years ago
  2. Lengendaryboss

    ^Nick Nack, Patty Wack, Throw The Dog A Bone. :D

    #2 2 years ago
  3. TheWulf

    It’s funny because I’m not convinced the XBox One will actually do all that well. Considering that both consoles are hugely underpowered compared to high-end computers on the market already, and that the XBox One is underpowered compared to the PS4, it makes the PS4 the more desirable choice to the person who absolutely must have a ‘next generation’ console. (The XBox One really doesn’t feel like one.)

    Then there’s the fact that they’re not allowing game sharing with the XBox One, something that PS4 (to my knowledge) and PC users can still enjoy. The games get linked to your Microsoft account, and you have to pay an exorbitant fee to transfer those rights to another account, a fee equivalent to the price of the game itself.

    Then there are joys like how the camera on the unit never turns itself off.

    With all this controversy and ill will, I can’t see the XBox One doing very well against the PS4 this year. Microsoft needs to realise that their consumers are actually more important than their business partners — this is something that they don’t exactly have a great understanding of. So I have my suspicions that we’re seeing a good amount of money going down the drain, here.

    —Edit

    Also, it’s kind of funny to see that whilst consoles are getting more and more closed and proprietary in regards to their architecture, the PC is becoming less so.

    Valve has some serious Linux love going on at the moment and they’re trying to create an interest shift to have publishers port to Linux as well as Windows. Not only that, but there are rumours of a new game trading system popping up on Steam (which would be a first for digital distribution).

    Then you have the Steam Workshop. Thanks be (again) to Valve, because now there’s a renewed interest with indie and mainstream developers alike to allow for modding within their games, as a Steam Workshop entry gives their games more visibility and it feels like there’s more good will involved. So developers are tacking on the ability to mod just to get in on the Steam Workshop. This can only be a good thing, and it has been. It’s been glorious.

    It’s just interesting that we’re seeing computers and consoles go in very opposite directions.

    PC: You can share if you like; You have access to all of your files; You can do what you like with your games; You have indefinite backwards compatibility; You don’t need to be online to play (DRM schemes which tried this have been shot down, and cracks exist); And you can mod your games.

    Consoles: You can’t share; You don’t have access to the files; You can’t do what you like with your games; You have no backwards compatibility (planned obsolescence, basically); You do need to be online to play; And modding on consoles largely remains a wet dream (especially since mod developing happens on the PC).

    It’s just interesting to me. And I suspect the divide will continue to widen with even greater opposites in the future.

    #3 2 years ago
  4. salarta

    For some reason, this is making me think of the Cell chip of the PS3.

    #4 2 years ago
  5. TheWulf

    You know… considering how expensive consoles are getting, I’m wondering if soon people will find it better to get a small, mid-range PC desktop to use with their TV. Especially because, you know, Steam’s Big Picture mode.

    #5 2 years ago
  6. Erthazus

    They won’t. Because people are stupid so that’s why there will be Steam Box in the future.

    #6 2 years ago
  7. Da Man

    Научись хоть на собственном языке разговаривать, прежде чем поносить тех кто не хочет париться с компами, урод больной.

    #7 2 years ago
  8. melonbuster1

    Most people don’t know about steam box or big picture mode.now on to those who might think ps4 is so powerful. . The ps3 was as well. Didn’t beat the 360.. same for the ps2. Ok now we all know the games are made the same across the boards. . So itsup to the exclusive games. . The online. Only a fool would say the ps3 had a better online. 360 killed it. The same will happen with this generation. . Buy what you like but remember friends dictates the purchase. . Xbox players have more friends. . They want to play with each other. . Xbox owners tend to be smarter and more hipsters compared to Sony owners

    #8 2 years ago
  9. nollie4545

    Consoles are dead. Cloud gaming is where it is at, or will be within 10-15 years time.

    Anyway, 3 billion is a bargain compared to what Nvidia and Intel would have charged MS for their hardware.

    Next stop for me is a HDMI cable and a nice flat screen to connect to my PC. Got an xbox controller for it, got steam, got windows live. Job done.

    #9 2 years ago
  10. Max Payne

    @9 Xbox 360 had better exclusives at beginning. like: Dead Rising, PGR4, JPRG games,Gears… but Sony only had Resistance and Motor Storm.

    #10 2 years ago
  11. Phoenixblight

    “You know… considering how expensive consoles are getting,I’m wondering if soon people will find it better to get a small, mid-range PC…”

    You can’t get a PC that does the same thing as the PS4 or Xbone for 300-400$

    #11 2 years ago
  12. The_Red

    I don’t think even Cell cost this much for Sony… and that was an actually advanced thing for its time (Albeit a needlessly complicated one).

    #12 2 years ago
  13. Debabrata Nath

    @The_Red – The cell processor deal cost Sony $400 million I assume.

    #13 2 years ago
  14. The_Red

    @14
    Thank you. That is really interesting, specially when compared to this insane deal.

    Really curious to know what was the reasoning behind such a deal and its cost.

    #14 2 years ago
  15. jmg24bad

    3 billion. and the console isnt even more powerful than the ps4? WTH?

    #15 2 years ago
  16. bennyx

    @9 to my knowledge the ps3 has sold more than the 360 worldwide but not by much tho! Also at least Ps3 online was free unlike the 360 even tho the 360′s online was better.
    Earlier in this generation of consoles you had games made for the 360 then ported over to the ps3 which were bad ports,but the last few years it has been quite equal.
    The new generation will be some what different,you’ll see games made for the PS4 then pretty much dumbed down graphically for the Xbox one.
    Gamers want games,so even tho my friends and i all own both consoles we are all loyal to games and not the console,we will get the best console for our games and from my gaming community that I have I would say 95% of us all want a ps4 coz we need to sell our games to fund new ones,(it looks like ps4will allow you to play 2nd hand games now)when a company tries to screw the gamer over,the gamer will turn their backs on them.
    Gamers forever

    #16 2 years ago
  17. dkpunk

    @16 care to enlighten me? Where do get the Xbox One more powerful as than the PS4? Anyway, I’d love to see the specs for the XBO custom chip. Hopefully that will be revealed at E3.

    #17 2 years ago
  18. Phoenixblight

    @18

    THey have the specs on hardware sites. It isn’t as powerful just based on the Xbone having 8 GB of DDR3 and the OS needing 3GB to run. Does make it less efficient than the Ps4.

    #18 2 years ago
  19. Erthabutt

    Of course there’re stupid people, otherwise Erthasuz wouldn’t even be there.

    And is it just me or everytime I see the word ‘XBone’ I want to punch the seemingly edgy teenage mind in his virtual face.

    ‘Hihi I’ll just call it Xbone so everyone knows I’m a goddamn loser’.

    No offense Phoenixblight, but you should’ve known better.

    Finally, it seems to me that while people like to spread their oh so enlightened thoughts about the future of those consoles, they still have no idea of the burden of having to play on a goddamn PC in your older years. It requires time and money that many simply don’t have. So it is pretty clear that this console well sell and that Microsoft is not going to fail with this product. They didn’t really fail with Windows 8, without clear success however, so I don’t why they would fail with this goddamn console that certainly looks good enought for gaming and for Media Entertainment as a whole.

    #19 2 years ago
  20. Lengendaryboss

    @Erthabutt
    Hmmm curiouser and curiouser.

    #20 2 years ago
  21. Lounds

    I’ve just used my old gaming pc to use as a steambox in living room.
    Intel core 2 duo
    4gb ram
    Geforce 460GTX

    Launched Far cry 3 I ran it at high at 720p and it looks twice as good as a ps3 version, I have both, think it’s time to sell the PS3.

    #21 2 years ago
  22. Richenbaum

    yeah let me tell you being able to afford a nice pc and playing all those games on it is a real hardship for me. uuuuuuugh such hard work having fun.

    #22 2 years ago
  23. Rockin a Jack D

    Xbox One indeed, because that’s how many units their going to sell…

    #23 2 years ago
  24. DSB

    Personally I’m more concerned with the fact that it looks like a VHS machine from before 1990. Is that some sort of design equivalent to hipster irony? I don’t get it.

    What’s next, an mp3 player shaped like a discman? A tablet shaped like an Olivetti monitor?

    #24 2 years ago
  25. Phoenixblight

    @20

    Yeah because we should all listen to someone that is named after someone else. I will call the system whatever the hell I like. Its far better than X1 or Xone. I just call it as such because its actually quite funny.

    #25 2 years ago
  26. wpx

    Spend 3 BILLION on customer service !! they offer a product they can’t back it up with people that speak ENGLISH !!! let alone answer the phone after an HOUR!! They have get technology I can’t even change my email address on the Xbox webpage…go ahead try it …like pulling teeth !

    BTW why is Wii FREE ? & Xbox A FEE! Xbox even wants a FEE for stores like Gamestop when they sell used games they want a cut from Gamestop

    Dear Xbox don’t you have ENOUGH MONEY?

    #26 2 years ago

Comments are now closed on this article.

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    Nintendo has updated the North American end of the eShop with a demo of Puzzle & Dragons Super Mario Bros. Edition, Paper Mario on Virtual Console, and amiibo Tap. The full update is below. eShop update amiibo Tap – free – Wii U Star Wars Pinball DLC – Wii U Paper Mario – Wii U […]

  • Deus Ex: Mankind Divided PC port handed off to Nixxes

    The PC port of the new Deus Ex has been handed over to Netherlands based studio, Nixxes software. After the initial reveal trailer at the beginning of April, we’ve only had a few morsels in the way of additional news. The most intriguing tidbit to date has got to be the fact that you’ll be […]

  • First-ever PC Gaming Show to take place at E3 2015 in June

    PC gaming will finally have its very own E3 press conference this year, thanks to PC Gamer and AMD. The PC Gaming Show will take place on June 16 at the Belasco Theater in Los Angeles and it will be livestreamed on Twitch. PC Gamer said speakers at the presentation will include representatives from Blizzard, […]

  • Majora’s Mask light available now on Club Nintendo for 6000 stars

    Club Nintendo shuts up shop on September 30 and members are being encouraged to spend accumulated stars before then. And what better to spend them on, than this adorable Majora’s Mask light? If you’re a member based in Europe you can nab it for 6000 stars. If you’re in Australia or New Zealand, it’ll only […]

  • Unity support announced for HoloLens, will work with Windows universal apps

    Microsoft is partnering with game engine developers Unity in order to make HoloLens compatible with apps and games which use the cross-platform engine. The partnership was announced yesterday during its Build Developer Conference. Universal apps for Windows 10 systems will also be available on Xbox One later this year, suggesting possible HoloLens functionality with the […]

  • Splatoon Nintendo Direct airs Thursday, May 7

    A Nintendo Direct focused on Splatoon, the Wii U multiplayer title, on May 7. It will kick off at 7am PDT/10am EDT/3pm UK and it can be watched via the Nintendo Direct website. You can also have a look at the game through Nintendo’s Twitch channel. The last game-specific presentation took place last week and […]

  • GTA 5 PC: clean up the streets as a member of the San Andreas PD with this new mod

    Remember the awesome mods for GTA 4 and San Andreas that let you run amok online as a member of the po-po? Well, dust off your taser and load up your gun, because it’s coming to GTA 5. The new mod for GTA 5 is currently in alpha and can be downloaded at palmbeachgames.com. You […]

  • Indie shoot ‘em up Project Root comes to Xbox One, PS4 and PSVita

    Project Root is a self-proclaimed rejig of the shoot ‘em up genre that was released on PC last year, and it’s finally coming to consoles. Combining free-roaming elements with the usual business of shooting things, Project Root was released this week for Xbox One, PS4 and the PSVita.

  • You can now bet on eSports online, starting with League of Legends

    If you’re getting bored with sticking a pony on the races, you can expand your gambling horizons at Unikrn where you can watch esports streams and get a little action on the side. The new platform was set up by Rahul Sood – previously the general manager of Microsoft Ventures. At the moment, customers are […]

  • Has Watch Dogs 2 been leaked?

    Ubisoft employee, Julien Risse, may have inadvertently confirmed Watch Dogs 2, thanks to his online CV over at LinkedIn. Videogamer.com spotted the slip up, in which Risse lists Watch Dogs, the DLC Bad Blood, and Watch Dogs 2 on his profile. Creative Director Jonathan Morin has already talked about his ideas for improvements for the […]

  • GTA 5′s Trevor makes his Jackass debut, complete with leopard-print knickers

    YouTuber Abstract Mode has shared his vision of what Trevor Philips’ life might have been like, had he not been completely batshit crazy. Watch Trevor get mauled, run over, and hit by a train, before taking a majestic swan-dive into someone else’s pool at the climax. Thanks, Kotaku.

  • Call of Duty: Black Ops 3 season pass will cost you £35

    Call of Duty: Black Ops 3 isn’t released until November 6, but you can already hand over your cash for the Season Pass. The Season Pass is available for pre-purchase on Steam for £34.99, and will cover four DLC packs – although the details we have on the content are limited to ‘exciting’ at this […]

  • GTA Online’s cheating assholes are no match for this player’s vengeance

    Think you’re smart for using invisibility and infinite ammo glitches? You need to be taught a lesson, sucker. You can have all the hacks you want but if your GTA Online game is weak, you’ll still get your ass handed to you. As this fool discovered when attempting to hassle another player. There’s a fair […]

  • PS4 sales help Sony’s games division swing to profit

    Sony’s PlayStation business has made an operating profit of 48.1 billion yen ($404m / £261.5m) in the past 12 months. That’s thanks to stellar sales of the PlayStation 4 and PS Plus, even as sales of the PS3 have stalled and the company wrote off costs for the PSTV and PS Vita. The profit puts […]

  • New patch for Dirt Rally gives co-driver’s attitude a tune-up

    Dirt Rally gets a new patch three days after release on Steam. On Monday, we reported that the newest Dirt game has popped up on Steam’s Early Access and is available to pick up for £24.99, as well as giving you an eyeful of tasty screenshots. The patch – released yesterday – fixes some issues […]

  • New The Witcher 3 screenshots show combat, exploration and general carousing

    New screenshots released on the official facebook page for The Witcher 3 show Geralt annihilating a winged beast, out and about in the world exploring, and living the life of Reily amidst a bustling feast. We were already treated to some glorious screenshots a few days ago, but these new ones are in-game and give […]

  • Destiny: 14 things you might have missed during House of Wolves intel drops

    Destiny: House of Wolves does a great deal more than just slap some new content on the existing game structure. House of Wolves changes Destiny in a lot of interesting and very welcome ways. Bungie showed off many of these changes in its livestream, and let both me and Arekkz come and have a look […]

  • Scratch that cyberpunk itch with Technobabylon on May 21 – new trailer

    Technobabylon more like Wrecked-yo-babbling with my smooth flow about how good Wadjet Eye games are. I don’t know y’all, it’s clock off time and everything feels like a reach. Wadjet Eye makes pretty good adventure games – award winning, in fact. The latest project to spring forth from the benevolent, sheltering hand of the label […]

  • Skullgirls 2nd Encore brings exclusive new features to PS4, Vita in northern summer

    Skullgirls, the little indie fighter that could, is getting another crack at it. Skullgirls 2nd Encore is the second re-release of the one-time troubled 2D versus fighter from lab Zero Games. Having survived the shut down of its developer and collapse of its publishing contrast, Skullgirls re-emerged as Skullgirls: Encore, adding in a ton of […]

  • Danganronpa series generates “impressive” sales for Vita exclusive

    Danganronpa is selling quite nicely, thank you, says NIS America. Danganronpa is a series of murder mystery visual novel puzzlers in a similar vein to games like 999. Two of these have been released for Vita in the west – Trigger Happy Havoc and Goodbye Despair. Speaking to MCV, NIS America CEO and president Takuro […]

  • I have no idea what is going on in J-Stars Victory VS+ but I kind of like it

    In this J-Stars Victory VS+ trailer, we see – uhh. Well. We certainly see some things. Look y’all, I was a massive weaboo in high school, but that was back in the dark ages when we had to take out Manga Entertainment VHS tapes from dingy little specialist rental joints that were literally underground, and […]

  • Please just watch this terrific trailer for Toren

    Toren is the kind of game I dream about when I drift off to sleep at night. This indie puzzle adventure strikes a spark in my little soul in the same way as Ico and Tequila Works’ Rime do. Mysterious, almost ethereal fantasy setting – check. Chance to actually walk around in that setting – […]

  • Play classic MS-DOS games on your own tweets

    In today’s episode of “what will they think of next”, someone’s figured out how to post playable versions of classic games in tweets. For some time now, Twitter has allowed you to embed various forms of media in tweets, most noticeably YouTube videos, simply by pasting a URL into the compose field. Turns out this […]

  • VR: Unreal Engine to add HTC Vive support

    The biggest digital PC game distributor and the most popular game development engine have both backed VR. It’s going to happen. An upcoming Unreal Engine 4 update will expand the development suite’s support to the HTC Vive, Valve’s VR headset. In this glorious new future where work on one of the most important engines in […]

  • WWE 2K15 PC supports modding

    WWE 2K15 may be the series’ PC debut, but it’s already getting into the spirit of the platform. WWE 2K15 does indeed support mods on PC, 2K’s Marcus Stephenson has confirmed. @ElementGamesTV you can. Now buy. — Marcus Stephenson (@stephensonmc) April 28, 2015 As Destructoid points out, this opens the door to all sorts of […]

  • Overkill’s The Walking Dead coming to PC, PS4 and Xbox One in 2016

    Overkill’s The Walking Dead is one step closer to your grasping little paws. Overkill’s The Walking Dead will be published by 505 Games, Overkill parent Starbreeze has announced. 505 also published Payday 2, Overkill’s previous title, so the two companies have established a working relationship. In a press release, the publisher said the co-op title […]

  • Call of Duty: Black Ops 3 pre-orders net Advanced Warfare DLC

    Buy Call of Duty: Black Ops 3 for later, enjoy bonus Advanced Warfare content now. Blacks Ops 3 is being supported by a rather cunning pre-order incentive even more likely to get you to lay your cash down sooner than you might otherwise. Gamespot reports a Black Ops 3 pre-order will receive a couple of […]

  • Steam Game Ban system lets developers determine who to block

    Steam users can now be blocked from individual games by their developers. Steam has always supported multiplayer bans for disruptive users, but a newly-implemented system allows developers to ban users from individual games using their own anti-cheat systems. Game Bans are enforced by Valve, but are enacted at the developer’s request and discretion. This change […]

  • Far Cry 4 devs matching Red Cross donations up to $100K to aid Nepal earthquake victims

    Far Cry 4 developer Ubisoft Montreal will match any pledges made to The Red Cross up to $100,000 to aid Nepal after the 7.8 earthquake struck the area in and around Kathmandu in Nepal. According to Ubisoft: “Having spent the last few years working on Far Cry 4, a game heavily inspired by Nepal and […]

  • Tales of Zestiria retail listing notes September release date, PS4 version

    Tales of Zestiria is coming west in northern autumn, and while it’s confirmed as a PlayStation 3 release, a Dutch retailer has it listed as coming to PS4 as well. Of course, listing it for PS4 could also be a typo, not that I would personally know about that sort of thing, really. However, according […]

  • Official mod tools for Total War: Attila are now available

    Official mod tools for Total War: Attila are now available and you can grab the new Assembly Kit as a beta through the tools menu via your Steam library. The Creative Assembly said the tools will be “immediately familiar” to modders of Rome 2 and Shogun 2, but the new version is the most “extensive” […]

  • How to get level 34 Ascended Raid gear in Destiny: House of Wolves

    Watch: two videos showing you how to get level 34 raid gear and a shopping list of what you need. One of the big changes that House of Wolves is bringing to Destiny is the chance to upgrade your weapons and gear to level 34. In these videos Arekkz Gaming shows you how to use […]

  • Destiny: House of Wolves puts PvP back in the spotlight

    Destiny PvP players, your time has come to shine. New Crucible maps. New Crucible rewards. And the glorious wonder of Elimination mode. Destiny: House of Wolves puts PvP front and centre. When Destiny was first detailed, one of the things Bungie stressed was that there’d be something for everyone. If you wanted to play solo […]

  • Destiny: Trials of Osiris – everything you need to know in one video

    The Destiny: House of Wolves embargo has lifted, and with so much information floating around pertaining to Trials of Osiris, it can be overwhelming. Thankfully, Arekkz Gaming tells you everything you need to know in one video. In the video above you will be informed of how the 3v3 Team Deathmatch event works, how you […]

  • Destiny: House of Wolves – watch a Trials of Osiris match from start to finish

    With the release of Destiny: House of Wolves looming, players will soon be able to participate in the new 3v3 Team Deathmatch event in The Crucible, Trials of Osiris. Below is a video featuring an uncut, complete match from start to finish. In the video, Arekkz Gaming gives you a breakdown of the mode and […]

  • Wolfenstein: The Old Blood – here’s what your PC needs in order to run it

    Wolfenstein: The Old Blood is out next week, and Bethesda has today released the PC specs for the standalone title. MachineGames has made some tweaks to the system requirements and have included both minimum and recommended specifications. Minimum OS: 64-bit Windows 7/Windows 8 Processor: Intel Core i5-2500 @ 3.3 GHz / AMD FX-8320 @ 3.5 […]

  • Destiny: Trials of Osiris – watch the livestream reveal right here

    Bungie will be showing off Destiny’s new 3v3 Team Deatmatch Trials of Osiris today, and you can watch the Twitch stream right here if you like. It kicks off at 11am PDT/2pm EDT and will feature community manager Deej and design leads Lars Bakken and Derek Carroll. More will be revealed on House of Wolves […]

  • May Xbox Games with Gold: Mafia 2, CastleStorm: Definitive Edition, F1 2013

    Microsoft has announced the free games Gold members will be able to pick up through Xbox Live. On Xbox One, Gold users can download CastleStorm: Definitive Edition for the month,and Pool Nation FX is being offered for an additional month. Starting May 1, Xbox 360 Gold members can download Mafia 2 through May 15, and […]