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

Monday, 27th 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

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  1. ps3fanboy

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

    #1 11 months ago
  2. Lengendaryboss

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

    #2 11 months 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 11 months ago
  4. salarta

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

    #4 11 months 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 11 months ago
  6. Erthazus

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

    #6 11 months ago
  7. Da Man

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

    #7 11 months 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 11 months 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 11 months 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 11 months 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 11 months 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 11 months ago
  13. Debabrata Nath

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

    #13 11 months 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 11 months ago
  15. jmg24bad

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

    #15 11 months 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 11 months 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 11 months 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 11 months 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 11 months ago
  20. Lengendaryboss

    @Erthabutt
    Hmmm curiouser and curiouser.

    #20 11 months 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 11 months 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 11 months ago
  23. Rockin a Jack D

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

    #23 11 months 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 11 months 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 11 months 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 11 months ago