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Rumor: Microsoft is interested in buying AMD

What do you think of this proposed buyout?


Results are only viewable after voting.
They'd get an x86 license out it right?

I think it depends how they buy it. The license itself is non-transferable, so if they just straight out become part of MS it'll be lost. They probably got some leeway out of the '09 settlement, but no-one knows how much or if there's any way for another company to buy into it
 

Courage

Member
Seems risky and unlikely.

It would be nice though, since they'd have the resources to promote competition against Nvidia.
 
Would it really deter Sony from using AMD chips?

I mean, Microsoft essentially puts money in Sony's pocket for blu ray drives right? Granted that's attributed to multiple companies so maybe it's not as big of a deal comparatively.
 

Tigress

Member
If this is true it could be a legitimate game changer IMO, simply because of the first paragraph in the second quote:

"The battle for video game console space is very strong. If Microsoft bought AMD, then Sony would be faced with a bad set of choices: put money in Microsoft’s pocket every time it sells a PlayStation, or try to create an entirely new platform by using technologies from Intel, Nvidia, ARM or Imagination Technologies....."

I don't see why it's that bad for Sony to put money into MS's pocket. Companies invest in other companies that they also have rival products with. Where it might be bad is if MS decides they want to create a leg up by making it hard for Sony to buy the products Sony uses (and the fact that AMD is the only one that makes the PS4 chip that could be a huge problem). That's a lot more what I'd be worried about honestly. Especially as I'd see this as a move by MS to claim hardware of their own.

For example for the longest time Apple used Samsung chips. Apple has moved away from that (probably not to be at the whim of Samsung) but I think they still use some stuff. Apple wasn't worried about giving money to Samsung for products it needed (that's business and it's silly to have this idea that they should never give money to Samsung when Samsung has something they want to use just cause they rival them somewhere else).

A big difference here is Samsung makes stuff to sell to several companies, not just to make their own hardware to sell to consumers. They make stuff to sell to whoever wants to use it in their products. MS is mainly interested in selling to consumers so buying AMD is most likely a move to enhance their own products, not to make money selling hardware to other companies to use in their products. So, this is what I'd be worried about happening (that MS is interested in having their own special hardware and therefore won't be interested in selling it to other companies... leaving Sony out of a chip for PS4). It may be a moot point depending on what contracts Sony has with AMD (MS might have to honor those contracts anyways but next playstation may have to use a different company).
 
I don't see why it's that bad for Sony to put money into MS's pocket. Companies invest in other companies that they also have rival products with. Where it might be bad is if MS decides they want to create a leg up by making it hard for Sony to buy the products Sony uses (and the fact that AMD is the only one that makes the PS4 chip that could be a huge problem). That's a lot more what I'd be worried about honestly. Especially as I'd see this as a move by MS to claim hardware of their own.

For example for the longest time Apple used Samsung chips. Apple has moved away from that (probably not to be at the whim of Samsung) but I think they still use some stuff. Apple wasn't worried about giving money to Samsung for products it needed (that's business and it's silly to have this idea that they should never give money to Samsung when Samsung has something they want to use just cause they rival them somewhere else).

A big difference here is Samsung makes stuff to sell to several companies, not just to make their own hardware to sell to consumers. MS is mainly interested in selling to consumers so buying AMD is most likely a move to enhance their own products, not to make money selling hardware to other companies to use in their products. So, this is what I'd be worried about happening.

Well I didn't say it was bad, hell, I don't even know where I implied that, I just said it would be a game changer, which it will be no doubt, in the PC market and console market.
 

Chobel

Member
Analysts estimate that Microsoft pays around $100 for every Xbox One system-on-chip to AMD. Life-to-date sales of Xbox One are around are around 12.6 million units, which means that Microsoft has already paid AMD around $1.26 billion for Xbox One chips. The acquisition of AMD could save it around a billion per year on Xbox One chips alone.

This is some weird math, MS still has to pay for APU manufacturing costs.
 
Daaaamn, that is 1/4 of every console and I am sure AMD makes a nice profit out of every chip.

But I was under the impression that Microsoft does not values its Xbox brand as much as its PC line, so I want to think buying AMD has more benefits to their PC´s than to the Xbox. I dunno.

It's cpu + gpu + chipset. It's pretty cheap, all things considered. I very much doubt they make "a nice profit", because these are deals done thinking in that they will make dozens of millions of units, so they can adjust profits a lot (and they have to, to be chosen above the competition). And if they would really make a nice profit, AMD wouldn't be in the bad situations it's right now lol.
 

Drek

Member
If this is true it could be a legitimate game changer IMO, simply because of the first paragraph in the second quote:

"The battle for video game console space is very strong. If Microsoft bought AMD, then Sony would be faced with a bad set of choices: put money in Microsoft’s pocket every time it sells a PlayStation, or try to create an entirely new platform by using technologies from Intel, Nvidia, ARM or Imagination Technologies....."

What does Sony care about MS making money as a company? They aren't competing with Microsoft, they're competing with the Xbox.

You remove the Playstation v. Xbox rivalry and you would actually have two companies with pretty nicely matching priorities for partnership opportunities.

A more likely outcome would be this advancing us toward the one console standard faster, as MS and Sony could collaborate on the HW design in a more direct fashion, release a single platform, and unify the market a la CD/DVD/Blu-Ray. Even that is unlikely, just more likely than Sony giving a damn about MS making a few bucks per console.

For comparison, Sony makes a good number of the camera lenses in all smartphones. You didn't see Apple freak out when they make the Xperia line did you?
 

AJLma

Member
They probably should do this, I don't see why they would buy them at all if not to get into the GPU and CPU design market.

Get some Microsoft engineers working directly with AMD on GPU's and CPU's. nVidia and Intel could use the competition. They'd also be better able to keep up with Apple in the mobile processing space.
 

Tenki

Member
Why do people think the companies are run by fanboys who don't want to make business with other companies just because?
 
Would it really deter Sony from using AMD chips?

I mean, Microsoft essentially puts money in Sony's pocket for blu ray drives right? Granted that's attributed to multiple companies so maybe it's not as big of a deal comparatively.
It won't. The only thing needed is to set up separate R&D departments for the future PS5 if AMD makes the chips, so the next Xbox can't 'steal' the designs.
 
Wouldnt this change the landscape? Or would Sony just pay the fee and have to be okay with it? (Seeing as they work with MS in other areas)
 

Tigress

Member
Well I didn't say it was bad, hell, I don't even know where I implied that, I just said it would be a game changer, which it will be no doubt, in the PC market and console market.

I think my main focus was your implication that Sony wouldn't want to put money into MS's pocket or that that some how was a game changer. That's not the game changer. The game changer is MS having control over who AMD sells products too and what MS is planning on doing with AMD. It may be a moot point for PS4 depending on Sony's contract with AMD cause MS may have to at least honor that contract (but they may not be interested in selling to Sony for PS5 leaving Sony having to find a different chipset).
 
Q

Queen of Hunting

Unconfirmed Member
Why would sony use amd if this happen microsft would know what sony is doing with their next console if thats case lol
 
What does Sony care about MS making money as a company? They aren't competing with Microsoft, they're competing with the Xbox.

You remove the Playstation v. Xbox rivalry and you would actually have two companies with pretty nicely matching priorities for partnership opportunities.

A more likely outcome would be this advancing us toward the one console standard faster, as MS and Sony could collaborate on the HW design in a more direct fashion, release a single platform, and unify the market a la CD/DVD/Blu-Ray. Even that is unlikely, just more likely than Sony giving a damn about MS making a few bucks per console.

For comparison, Sony makes a good number of the camera lenses in all smartphones. You didn't see Apple freak out when they make the Xperia line did you?

Again, just simply said it was a game changer man, in both the PC market or console market respectively. It will change things no doubt, whether what you said is true, idk, but no doubt it will change things a bit, no doubt about that.
 

SerTapTap

Member
What? Why? I mean yeah, Xbox, but their Surface stuff is all Intel and I can't see AMD coming up with a replacement. And the Xbox deal is already done. And I don't really trust Microsoft to push the core gamer focus for GPUs either.
 

CoG

Member
"The battle for video game console space is very strong. If Microsoft bought AMD, then Sony would be faced with a bad set of choices: put money in Microsoft’s pocket every time it sells a PlayStation, or try to create an entirely new platform by using technologies from Intel, Nvidia, ARM or Imagination Technologies....."

Just like Microsoft puts money in Sony's pocket for Blu-ray or Sony puts money in Microsoft's pocket for VC-1?
 
Would be a interesting move if so.

Sony probably wouldnt want to stick with a MS owned AMD but also Nvidia has been a notorious shitty company to work with whenever they have worked with console makers.



Anyway I dont see it happening. It would be a pretty unexpected move for MS. They are all about software and services. Getting into the CPU / GPU business would be real weird for them. That is unless its purely a patent / licencing grab.
 
Was Sony's deal with AMD an up-front thing and they don't get anything else?

Like, does AMD get any money from individual sales of PS4 units?

Just curious if Microsoft would make any money off PS4 unit sales if this actually happened, or if all of Sony & AMD's transactions concluded before the PS4 launched.
 
Doesn't AMD lose their x86 license if they get sold? Same difference.

Only Intel and AMD know the specific details of the agreement. It's not just AMD using x86, there's Intel using AMD64. AMD could be bought but could continue to operate as AMD, AMD could be bought and a new agreement could be reached, or AMD could be bought and lose the license only for the government to laugh at the prospect of Intel's only "competitor" in the space being VIA.
 

Dynasty

Member
Very plausible rumor, will potentially save MS a lot of money and give them more influence in PC gaming which they have said they are taking it more seriously. Which they always say though.
Also could be a good thing and result in GPUs that can match Nvidia. AMD has been loosing market share to Nvidia. I am a bit worried though since it is MS.
 
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