Intel lost PlayStation 6 chip contract over profit margins and backwards compatibility concerns, according to report

Intel may have missed out on a signficiant PlayStation 6 contract, which would have seen the company's chips be used in Sony's next-gen console. This comes from a new report from Reuters, which claims that Intel may have ultimately lost out on the deal due to a disagreement on profit margins and concerns around backwards compatability.


The report, published late yesterday, cites sources which state that AMD has picked up the PS6 bag after Intel was no longer the frontrunner. This deal, if locked in by Intel and Sony, would have amounted to billions of dollars in revenue according to two of Reuters' sources.


The Reuters report states: "A dispute over how much profit Intel stood to take from each chip sold to the Japanese electronics giant blocked Intel from settling on the price with Sony, according to two of the sources. Instead, rival AMD landed the contract through a competitive bidding process that eliminated others such as Broadcom (AVGO.O), until only Intel and AMD remained".


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