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

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

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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