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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.

Sulik2

Member
This would actually be kind of huge, has me tempted to buy AMD stock. And knocking out a billion a year for the next ten years of home consoles by owning AMD would make this almost a free acquisition.
 

Game4life

Banned
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.

Can mobiles and consoles be compared though? For example imagine this gen if MS knew in advance the design for Sony's console would the company have adopted a similar architecture that it ended up with?

Sony selling sensors to Apple and HTC is very different than collaborating on something that is the core diffrentiator for a fixed platform that has to survive for multiple years.
 

Ennosuke

Member
I think this would be good for PC Gaming. But of course MS could have different intentions of which we don't know yet.

Oh and by the way I think it is not such a big deal for Sony or Nintendo to buy chips from MS(AMD).
 

Doffen

Member
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? It isn't even fabbing after selling off Globalfoundries.

What are their assets worth? patents, research, etc.
 
At a high level I just can't imagine Microsoft wanting to get deeper into hardware.

They're already in deep, perhaps they feel their current efforts aren't really good enough. I think a major part of this is Hololens more than anything else, although obviously it will affect things like Xbox, Surface, WP and others too.

Sounds like it would be a relatively cheap acquisition even adding in a premium to their current value, they could end up paying not much more than they paid for Minecraft! Not sure how likely I think it actually is, though
 

DGaio

Member
If anything, I see Apple buying AMD before MS. Apple is an hardware company in itself, more so than MS, and AMD's devices are compliant with Apple technologies so they would get more out of it, even if they lose the x86 license from the buyout.
 

yuraya

Member
It would be a smart move for MS. Why pay all these fees to all these companies for things like Surface, WP, Xbox etc. They have clearly moved into the hardware market and nowhere near the same company they used to be 10 years ago. This purchase makes a lot of sense for MS.
 

Kysen

Member
Sony would be forced to switch GPU vendor for PS5. Otherwise they will be 1upped against MSs' next console as MS would be manufacturing both GPUs. Sony cant afford another PS3 (under powered vs the competition).

Anyway AMD offers nothing of value to MS, their CPUs are garbage vs Intels' offerings. Their GPUs on the desktop side need to have bargin bin prices to even move the marketshare needle. Their console contracts aren't bringing in much money otherwise they wouldn't be losing so much money every quarter. So what do they offer MS?
 

Torment

Banned
Satya is about widespread adoption so this would have zero effect on Sony and Nintendo. If MS moving towards a unified platform across the board this makes perfect sense and would net them high profits. AMD is under really bad management and they need a change in ownership to light a fire under their engineers.
 

10k

Banned
You know the old saying "if you can't beat em, buy their chip provider".

Now I want the NX to go nvidia and Intel or arm and nvidia more than ever.
 
Microsoft: "So Sony and Nintendo, you both want to use AMD chips for your next console? Well, we'll all use the same chip, our cost will be $150, your cost will be $200, kthnxbye"

Well yes, if you sell everything at cost price then you go out of business pretty quickly.
 
Dubious. Isn't Nadella pretty cool on hardware? Like, they're still gonna make it, but their primary focus is pretty firmly back on software and services. I really don't see this happening.
 

Oregano

Member
You know the old saying "if you can't beat em, buy their chip provider".

Now I want the NX to go nvidia and Intel or arm and nvidia more than ever.

I'm almost certain Nintendo would rather work with Microsoft than Nvidia at this point.
 
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.

An AMD powered by MS cash money has a much better chance of preventing an Nvidia monopoly than current AMD
 

4Tran

Member
It would be a smart move for MS. Why pay all these fees to all these companies for things like Surface, WP, Xbox etc. They have clearly moved into the hardware market and nowhere near the same company they used to be 10 years ago. This purchase makes a lot of sense for MS.
Microsoft's most important business relationship is with Intel so why would they want to blow that up? The cost of a few fees mean nothing to Microsoft.
 

kamspy

Member
What do you get when you buy AMD? The fabs are gone.... Just a bunch of patents? I thought MS learned it's lesson about hardware.
 
If anything, I see Apple buying AMD before MS. Apple is an hardware company in itself, more so than MS, and AMD's devices are compliant with Apple technologies so they would get more out of it, even if they lose the x86 license from the buyout.

No. Just no. And I wish people would stop talking about the x86 license like its something the Feds are going to actually disallow. The feds have been breathing down intels neck for over a decade about being an effective monopoly & people think the they're going to make it official just like that? Not gonna happen.
 
I think something like this could be very positive for the market if AMD can increase their R&D spendings that way. With a big company like Microsoft or Samsung backing them, they could finally become competitive.
 

NEO0MJ

Member
Oh god, filthy Microsoft are trying to force Sony out of business! I don't mind Nintendo going out cuz lul Nintendo but not Sony. I hope Nvidia partners with Sony so they can wipe out both failing companies.
 

kruis

Exposing the sinister cartel of retailers who allow companies to pay for advertising space.
This would actually be kind of huge, has me tempted to buy AMD stock. And knocking out a billion a year for the next ten years of home consoles by owning AMD would make this almost a free acquisition.

It doesn't work that way. Microsoft would still have to pay the production costs of the APUs. They'd save on licensing costs, but that's not a billion dollars a year.
 

tmtyf

Member
That might guarantee a nividia PS5...which is great

While a nvidia next gen console would be great (look at some of the great stuff that came from the OG xbox) i don't think anybody would venture down that path, especially after seeing how they screwed MS over. Not to mention like another poster said, i do not believe sony could afford them at this time.
 

rpg_fan

Member
Kinda curious how this would work out, I was under the impression that the x86 license was null if AMD was bought out. The same thing was discussed when the rumor was Samsung buying out AMD.

I guess maybe if AMD was retained as a wholly separate entity owned by MS? I know nothing of contract law, so this stuff is a bit interesting to me.
 

Guevara

Member
Even after they bought Nokia? Owning the design IP at AMD makes perfect sense for a variety of reasons.

Ballmer bought Nokia because he felt they had to, to prop up Windows Phone.

It's pretty clear that Nadella and Microsoft's board think it was a mistake.
 
Damn, and people thought buying exclusive games was a problem. This is a big game changer in that it would essentially force Sony and Nintendo to not go AMD in the future as sales of their consoles would be putting money into their competitors pockets.

Seriously though, why would Microsoft want to do this? What benefit do they have other than now getting the chips for the Xbox One at cost. I dont see AMD helping their Surface line as I believe Intel is way ahead than AMD on the chipsets needed for such a device. So again, I mean they will save money on each Xbox and have to spend billions to catch up to Intel to replace Intel chips in the Surface which is, from what I understand, way more profitable as is than the Xbox.

Or I could be wrong. *shrugs*
 

thuway

Member
Wouldn't it make more sense for Sony to buy AMD? Sony is reliant on saving every penny on PlayStation since it is a pillar of their profit margins.

Microsoft would stand to benefit much less from AMD- unless they are buying this company for the sole intent of buffing profit on the Xbox brand- which for all intents and purposes is proving to be less and less important in their overall vision.

In any case, whoever buys AMD loses. The company is an albatross who does nothing but lose. Outside of cheap silicon designs they have virtually no clout in the CPU, mobile, or server space.
 

Bl@de

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.

Great post. Doesn't sound reasonable or smart to buy AMD.
 

Kayant

Member
They're already in deep, perhaps they feel their current efforts aren't really good enough. I think a major part of this is Hololens more than anything else, although obviously it will affect things like Xbox, Surface, WP and others too.

Sounds like it would be a relatively cheap acquisition even adding in a premium to their current value, they could end up paying not much more than they paid for Minecraft! Not sure how likely I think it actually is, though

The problem with this is they are going to be making a lose if they don't invest a lot into AMD and at that point is their investment going to be really worth it? That's if it works. Personally I just don't see why they would reasonable do this and how they would be getting their investment back.
 

Duxxy3

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.

Not entirely true. Even if you're just looking at it from the Windows and services viewpoint. Microsoft wants faster and faster chips. Intel has been sitting on their asses for years because they have such a gigantic lead on AMD. The CPU market has been fairly stagnant for a while now.
 
Why is the focus on consoles?

Microsoft-AMD vs. Intel would have much bigger implications than CONSOLE WARZ.

This would further separate Mac from Windows.
 

tuxfool

Banned
Wouldn't it make more sense for Sony to buy AMD rather than Microsoft? Sony is reliant on saving every penny on PlayStation since it is a pillar of their profit margins. Microsoft would stand to benefit much less from AMD since the company has virtually no mark in the mobile, server, or CPU space - unless they are buying this company for the sole intent of buffing profit on the Xbox brand- which for all intents and purposes is proving to be less and less important in their overall vision.

Sony is broke (not really, but not in a position to make a buyout of this magnitude).
 

Zedox

Member
It's hardly for gaming...I see this (if true...I still highly doubt) as something to make Hololens, Xbox, Surface Hub, and Surface cheaper (still have the i-core versions) going forward. People who think this is about Sony/Nintendo...you are very much stuck in your gaming world and can't think outside of it (even in the linked article). MS making computers, it would make sense for them to get some of the other stuff cheaper. I don't know if they are going to do it, especially with Nadella trying to make his core products lean...this would hire and then fire more people.
 

Dlacy13g

Member
Would be a smart move on MS's front. They have been moving more and more into hardware in the past few years. This seems like a solid move for them and gets them more in line with an Apple like infrastructure.
 
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