AMD Hit The Jackpot With Next Generation Consoles

27 February 2013, 9:33 am EST By Vamien McKalin email: Mobile & Apps

Advanced Micro Devices, Inc (AMD), is on a high this year as the company appears to be providing key components for all three next generation consoles. Profit margins for 2013 to 2019 should be lucrative for AMD, as all three consoles are expected to sell over 70 million units during their lifetimes.

The big question that needs answering is how AMD managed to seduce Nintendo, Sony and Microsoft into providing both the CPU and GPU for their next generation consoles. Certainly, AMD must have had competition from Intel and NVIDIA to be the central part of all three consoles, but somehow, the company performed some impressive magic tricks to get rid of the competition.

We bet AMD won over Nintendo, Sony and Microsoft with a better deal where price is concerned. It has been long known within the PC community that AMD typically has the most affordable products when it comes down to CPUs. AMD-branded CPUs are not usually fastest when compared to CPUs from Intel, but they get the job done for a fraction of the price.

Because AMD dabbles not only in CPUs but GPUs as well, a deal to provide both CPU and GPU at an unbeatable price would have likely come up. Such a deal could have been the masterstroke that landed AMD in the bosoms of all three next generation console manufacturers.

However it came to pass, AMD is riding high while others look back at what could have been. Now, only if AMD could replicate that success in the PC market, where it is being swallowed by Intel year after year.

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