Intel has reportedly lost the contract to supply chips for the upcoming PlayStation 6, which is believed to be a significant win for AMD. The loss allegedly stems from disagreements over profit margins and concerns regarding backwards compatibility with the PlayStation 5. Sources indicate that this contract, valued in billions, was a major opportunity for Intel that fell through due to these issues, leading AMD to secure the deal. The emphasis on backwards compatibility was a crucial factor, as AMD's prior work on the PS5 chip supports easier integration for PS6.

nWhy did Intel lose the PlayStation 6 chip contract?

Intel lost the PlayStation 6 chip contract primarily due to disputes over profit margins and concerns about backwards compatibility. As AMD manufactured the PS5 chip, the transition to PS6 would be smoother with AMD leading the production.

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The PlayStation 6 is stirring excitement in the gaming community, especially following Sony's recent PS5 Pro announcement, which has garnered mixed reactions due to its price. As the gaming industry continues to evolve, the competition between console manufacturers, particularly between Sony and Microsoft, heightens the anticipation surrounding next-generation systems.