A contract with Sony to make chips for the PlayStation 4 has become a lifeline for AMD during a period of financial difficulties, helping the company avoid bankruptcy and lay the foundation for future growth.
AMD Rescue
Hard Times
A decade ago, AMD was going through difficult times. Experts predicted the possible bankruptcy of the Reds by 2020. In 2015, AMD recorded a 10% drop in revenue due to a contraction in the personal computer market.
Key contract
However, the agreement with Sony to manufacture processors for the PlayStation 4 turned out to be a saving grace for AMD. This is evidenced by a post on the LinkedIn profile of Renato Fragale, head of AMD's client gaming PC division:
"...one of the most successful launches in AMD history, which helped the company avoid bankruptcy."
Versatile Support
It's worth noting that Sony's PS4 wasn't the only console to use AMD chips. Microsoft's Xbox One was also based on the company's system logic. Despite the relatively small profits, million-dollar sales of consoles with AMD chips from both manufacturers played a significant role.
Success Factors
The lack of Microsoft mentions on Fragale's resume may be due to differences in sales volumes. To date, PS4 has sold over 117 million units, while Xbox One has sold around 58 million units. Analysts estimate that only about 35 million Microsoft consoles had been sold at that time.
Glossary
- AMD - Advanced Micro Devices, an American company, manufacturer of processors and graphics chips
- Sony is a Japanese multinational corporation, a manufacturer of electronics and game consoles
- PlayStation 4 (PS4) is an eighth generation game console from Sony
- Microsoft is an American technology corporation, software developer and manufacturer of game consoles
- Xbox One is an eighth generation game console from Microsoft
Links
Answers to questions
What problems did AMD experience ten years ago?
What helped AMD avoid bankruptcy?
What other game consoles used AMD chips?
Why doesn't Renato Fragale's resume mention collaboration with Microsoft?
How has AMD changed over the last ten years?
Hashtags
Save a link to this article
Discussion of the topic – PlayStation 4: AMD's lifeline in an era of financial troubles
The article talks about how a contract with Sony to produce chips for the PlayStation 4 helped AMD avoid bankruptcy during a period of financial difficulties for the company.
Latest comments
8 comments
Write a comment
Your email address will not be published. Required fields are checked *
Eliza
Wow, I didn't know AMD was so close to bankruptcy! 😮 I wonder what the processor market would look like now if they had not survived?
Hans
Yes, Eliza, this is truly amazing. I think that without AMD Intel would have a complete monopoly and processor prices would be much higher. Competition is always good for consumers. 👍
Sophie
I agree with Hans! It's also interesting that the PS4 played such an important role. I never thought that consoles could have such an impact on the processor market. 🎮
Giovanni
This shows how important business diversification is. AMD did not limit itself to just PCs, and this saved the company. Smart move! 🧠💼
Victor
Ha, all this AMD hype. Just think, they somehow survived there. The processors were and remain the same. There is nothing to admire here, business as usual.
Eliza
Victor, but isn't it great that we have a choice? Thanks to AMD, we can choose between different manufacturers and technologies. This is progress! 🚀
Pablo
I agree with Eliza. Plus, AMD now makes really cool processors. My Ryzen is a beast! So I'm glad they survived and continue to grow. 💪🏼
Oksana
And I’m wondering how AMD managed to recover so quickly and begin to compete with Intel on an equal footing. This is an incredible leap in 10 years! 📈 Maybe someone knows the details of their strategy?