Intel is interested in the new Xbox, it would like to replace AMD

#Intel #interested #Xbox #replace #AMD

Next year it will be 20 years since Microsoft’s gaming consoles have been powered by AMD (if we count the separate ATi back then). Meanwhile, specifically in 2013, AMD hardware also made its way into the rival Sony Playstation console. While Sony, according to industry rumors, is “loyal” to its suppliers and its policy operates more in the style of “if it works, don’t mess with it”, where the priority seems to be not to lose a reliable partner and to start developing the next generation as soon as possible, in the case of Microsoft the philosophy is another. The goal is to collect as many offers as possible with each generation and evaluate them until the last possible moment, so that potential partners are motivated by favoring their offers.

This time, Microsoft is particularly strongly motivated to take a similar step, because a lot has changed compared to the preparation times of the previous generation. Nvidia now has more powerful processor ARM cores available, and Microsoft, with regard to the growing support of the ARM architecture within its operating systems, is willing to use it if it sees any advantages.

On the other hand, Intel has moved from a processor manufacturer to the position of a company that is able to supply not only processor cores, but also graphics solutions and also its own production capacity. This is potentially interesting not only for Microsoft, but especially for Intel, which is interested in obtaining the contract for several reasons.

Advantage #1: Involvement of the graphics division

Intel is currently facing several problems. One of them is its graphics division. The first generation of ARC graphics cards suffered huge delays, did not reach the set goals and, among other things, practically failed to get into laptops.

Mobile versions of these GPUs are now starting to appear on desktop cards (sweeping warehouses, see e.g. the second link in the sources) and in addition, there are rumors that the second generation of Arc graphics, Battlemage, Intel would not have to release it at all in mobile form due to lack of interest. By penetrating the Xbox, Intel would both gain a market for its graphics chips and, on the other hand, force developers to optimize for its architecture, which would make it easier for it to enter the PC market.

Advantage #2: Involvement of factories

Another of the problems that Intel getting the contract would help to solve would be the lack of interest in the production capacities offered within the framework of IFS (Intel Foundry Services). Intel has managed to win almost no business since announcing these services. In fact, it is not surprising, because even Intel alone uses its own production lines less and less, which produces graphics at TSMC, accelerators at TSMC, now also processor components at TSMC, and it looks like it will also move the production of processor cores to TSMC with the Lunar Lake generation .

From the courtship with UMC, it seems that he would also like to transfer the production of pads (on which the tiles are layered), which he has been producing using his own 22nm process, to an external partner. According to the MLID, Intel should have offered Microsoft de facto production at production costs in order to increase the turnover of the IFS division and advertise it as a custom production for a major customer.

For now, it is not clear who will get the order for the new Xbox. However, considering the information that fell in AMD’s financial report, it is possible that this brand will not really try to get it at any price. Indeed, console sales are declining (despite the fact that the next generation is still a long way off), and although AMD saw sales of its discrete PC graphics grow in the last quarter, revenue from console chips fell very significantly. Such a situation may bring considerations about which segment the use of available human resources is more efficient from an economic point of view. From Microsoft’s point of view, however, the change of supplier carries certain risks – Microsoft is not blind and certainly perceives the contradictions between the hardware Intel promises on paper in recent years and what it actually delivers. While Intel’s offer may be interesting in terms of production costs and capacities, the risks of delays, underperformance or unconvincing energy efficiency are not negligible.

So, while the SoC manufacturer for the next-generation Playstation seems certain, the solution supplier for the new Xbox has probably not been chosen yet (or at least the final decision is being kept under wraps by both parties).