• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Rumor: Microsoft is interested in buying AMD

What do you think of this proposed buyout?


Results are only viewable after voting.

Iced Arcade

Member
If it happened it would be business as usual for consoles. Apples biggest competition in mobile is Samsung and yet samsung supplies apple with the largest amount of components.
 
Man this would also be a big deal for PC. I see lots of posts in here about console, and the benefits there are real, but with all of the lip service MS is making about unifying Xbox and PC this makes a LOT OF SENSE

Think about this, MS keeps saying they are unifying the ecosystem between Xbox and PC. If they are making their own GPUs for consoles and their own GPUs for PC, porting games between the two would be astronomicaly easy
 

The Flash

Banned
If this goes through, I guess the next PC Gaming Show will be hosted by Phil. Lol.

I really hope this becomes his nickname here at GAF.

Buddy I already made the gif for it.

F8kaBZo.gif
 

Circinus

Member
But that would not make sense right? Why would Sony essentially approach MS when designing their next console that is competing with an MS console?

I don't see how that doesn't make sense? It can be win-win for both.

Happens multiple times in the world of large corporations where subsidiary A part of company A, partners with subsidiary B of company B, but subsidiary A of company A is a competitor of subsidiary C of company B.
 

Caronte

Member
Why would you want that? Then you only have Intel for PC chips. Some competition in this area will be good.

I said I wouldn't mind, not that I want it. I want AMD to be independent.

Eh, yeah, how does Intel buying AMD make anything better? Yeah, right. It doesn't. It makes things worse.

I've only said that because IIRC there was a similar rumor about Intel and AMD. I think, can't remember very well. Maybe it's the Samsung rumor I'm thinking of.
 

Oregano

Member
To give some examples, Intel owns Havok physics, but develop it to run on every platform despite having no console presence.

ARM owns Enlighten, a lighting middleware used by a ton of games, and still spends a lot of time developing the console version.

Sony sells cameras to almost all their competitors phones.

Microsoft released Microsoft Office on Apple devices before Windows mobile devices.

You don't spend $2 billion on a hardware company and then shut off all of their business. The goal is to improve the company that's making parts that are highly relevant to their future business objectives. They can pour in a lot of money and get better mobile hardware for their entire devices line while also selling those parts to others if they become the industry leader.

Also even just in the realm of gaming Microsoft has been really cooperative. Minecraft is still on Playstation and their IPs appeared on the DS.
 

Yurikerr

This post isn't by me, it's by a guy with the same username as me.
But that would not make sense right? Why would Sony essentially approach MS when designing their next console that is competing with an MS console?

Maybe because AMD (Microsoft) would offer a better deal? The same way that they offered one this generation?

Just check the amount of companies that sell/use components from competition.

Sony and Samsung sell lots of mobile components to Apple, HTC, LG and others.

TV/Monitor/Smartphone panels are in the majority made by LG or Samsung.

This companies like money not rivalry.
 

Hoje0308

Banned
But that would not make sense right? Why would Sony essentially approach MS when designing their next console that is competing with an MS console?

For the exact same reason they sell cameras to their competitors in the mobile space. They'll do whatever gets them the best deal.

Edit: beaten
 

McHuj

Member
Wow. That would be something.

MS would essentially be buying the x86 license. This has much bigger implications for cloud/servers, imo, than jsut gaming.
 

SalvaPot

Member
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.

Really good points, but ignoring AMD´s situation, it makes sense for microsoft to buy them if the cost per unit is $100 anyway, might as well purchase them since I am sure the X1 still has potential to sell quite a few units.
 

Green Yoshi

Member
munch.gif


Sounds crazy. AMD has no chips for smartphones and tablets. And for Surface Intel is the better choice. Furthermore they don't make money.
 

cirrhosis

Member
Wow. That would be something.

MS would essentially be buying the x86 license. This has much bigger implications for cloud/servers, imo, than jsut gaming.

Depends how the x86 agreement between Intel and AMD is written. I don't think MS would get it that easy.
 

Kayant

Member
Don't really get this rumor what's the benefit of them during this considering hardware is not going all that well for them or at least in comparison to their other efforts it seems silly to invest more in it especially at this level. Or am I missing something here?

Also what's with the no another console manufacturer with be using AMD again. They are businesses I mean Sony used to work with MS with Windows, Samsung used Qualcomm for a while for their handsets in US, etc. Businesses is business if it's the best situation for them they will go with it.
 

Kaako

Felium Defensor
Hmmm not sure how I feel about this rumor but gut reactions are not positive. I just want AMD to try to stay competitive in the GPU market cause fuck that Nvidia monopoly.
 

xblarcade

Member
Wow. That would be something.

MS would essentially be buying the x86 license. This has much bigger implications for cloud/servers, imo, than jsut gaming.

Very much this!

While there is no real evidence that MS will be shutting down the Console division, there is a lot of evidence that they see the cloud as the future of MS, being able to reduce the costs around the hardware that backs Azure would have much more impact on this.
 
AMD are having trouble running their own operations. Do MS really think they can turn that ship around? How much profit are AMD making per chip? They aren't even fabbing after selling off Globalfoundries.
 

Gren

Member
I'm not surprised that many on GAF are looking at this in terms of how it could affect the console wars, but I'm surprised the article (and other message boards citing it) are as well. Wouldn't this have a *much* greater impact (for better or for worse) on the CPU/GPU market than anything else?
 
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.

Yup, between that and the licensing fees from Sony and Nintendo, I can see them recouping that billion and a half dollars surprisingly quickly on console sales alone. Assuming Sony and Nintendo also pays $100 AMD for their chip, that means a combined total of 15 million newgen console sales would be enough for this transaction to break even, and that's without anything on the PC side. The odds of a Microsoft-owned AMD stopping supplying Sony and Nintendo with CPUs is a bit like the odds of a Microsoft-owned Mojang dropping support for the PS3/PS4/PSV versions of Minecraft: nil.
 
Depends how the x86 agreement between Intel and AMD is written. I don't think MS would get it that easy.

No way the federal govt creates an artificial monopoly by disallowing it. It would sail thru. If anything, this is the rare type of acquisition which would be seen as increasing competition in the market place. AMDs precarious financial position which has slowed their ability to compete with Intel & AMD for years would be solved overnight.
 

4Tran

Member
This sounds like someone is holding onto a lot of AMD stock and they want to pump up the value! Realistically, there's no reason for Microsoft to enter the semiconductor/CPU business. And even if they wanted to do so, AMD would be a bad choice because they don't own any fabs any more. In any case, this article is bad because it's talking about irrelevancies like how Microsoft owning AMD will affect Playstation (hint: it just means that Sony changes their cheques to say "Microsoft" instead of "AMD"), and ignoring the major issues of how Intel is going to react. And given the Intel complication, it's pretty safe to say that the chance of this acquisition going through (or even Microsoft having any interest) is zero.
 
Top Bottom