A micro view at why Advanced Micro Devices, Inc (NYSE:AMD) powers the Xbox and PS4

Posted by George Brook June 27, 2013 0 Comment 2546 views

The largest gaming show in the world, the E3 is now a fortnight old and, the long-awaited game console launch dramas are beginning to end. Everyone has now seen the faces of the PlayStation4 and the Xbox One, know what their prices are and what they can do and can’t. However, very little has been said about what goes on behind the console mechanisms and how and why both Sony and Microsoft chose Advanced Micro Devices, Inc (NYSE:AMD) to power their respective new generation consoles.

The simple answer

The answer to that may be a stare-you-in-the-face one but maybe we can look at it again. Both the companies were vying to have a stronger console “footprint”, wanted additional applications and cost-effective development. Both consoles are about home automation, home entertainment and control.  And only a power application processor such as one that AMD has was the only one that fit the bill. It was a lot a about being at the right place at the opportune moment.

From an implementation perspective, both, Microsoft and Sony needed system-on-a-chip or X86-based SOC. These are designed very much like those that exist in smartphones. Every single function like graphics, apps processor, audio, image processing, I/O and memory controller are all driven-off a single silicon piece.

Incomparable excellence and commitment

AMD came out tops on all parameters and ended up receiving the final nod. Advanced Micro Devices, Inc (NYSE:AMD) packed a punch on all counts. It has the know-how, advanced IP, experience as well as the commitment to implement this scale of projects. It has the leading edge IP in GPU, CPU, memory, audio, video, and I/O. X86 SOC, the first quad core was also designed by them. It’s all in a days work for the company to take that to eight cores. What probably was the clincher was the fact that AMD actually went ahead and built a complete new product division to support this effort.

This is something that others were either unable to or were not prepared to commit to. With the muscle, mettle and commitment that Advanced Micro Devices, Inc (NYSE:AMD) was willing to offer the console giants, it was bound to be an all-out win.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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