In a surprising turn of events, Intel missed out on a massive opportunity to design and manufacture the chips for Sony’s upcoming PlayStation 6 console. This lost contract, which came back in 2022, dealt a significant blow to Intel’s efforts to build its struggling contract manufacturing business.
According to a new report by Reuters, Intel was a contender for the PS6 chip contract, which could have brought in billions of dollars in revenue and allowed them to fabricate thousands of silicon wafers each month. However, in a fierce bidding process, Intel faced stiff competition from AMD and TSMC, the companies already responsible for the chips powering the PS5 and upcoming PS5 Pro consoles.
Ultimately, AMD secured the contract, solidifying its position as a dominant player in the gaming industry. AMD has already reaped significant rewards from the PS5 and PS5 Pro, producing tens of millions of chips and seeing sales of over 10 million PS5 Pro consoles. Now, with the PS6 contract in hand, AMD is set to continue this success for years to come.
The potential loss for Intel was significant. Winning the PlayStation 6 contract would have been a game-changer for the company, bolstering its semiconductor business. Intel’s CEO, Pat Gelsinger, has been actively trying to revitalize the company’s foundry business, but this recent setback could hinder his efforts.
Intel’s potential win would have been massive, with the projected sales of over 100 million PlayStation 6 consoles over five years. This would have not only boosted Intel’s revenue but also solidified its position as a leading chip provider in the gaming market, potentially leading to further contracts.
However, with AMD securing the contract, Intel will be forced to look elsewhere for opportunities. AMD, meanwhile, continues to dominate the gaming landscape, with its chips powering not only gaming consoles but also a wide range of gaming handhelds, laptops, and other devices.
