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Rumor: Microsoft is interested in buying AMD

What do you think of this proposed buyout?


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the cost of making Xbox Ones would decrease while Sony would struggle to compete price wise. That's how I see it at least

The contracts for PS4 components are thoroughly done at this point.

This would have an effect on PS5 development, for sure, but the assumption is that Intel/Nvidia would turn in a serious attempt at winning some console business.
 
Not really, AMD was only responsible for initial designs of the APU [and upcoming revisions]. The actual production of the chips is done by independent factories. AMD has sold their factories long time ago.


As its mentioned in the article MS pays AMD roughly $100 for each xbox sold. Its more than likely that there is a similar deal set up with Sony
 
Nonsense. Source? It seems to me mobile is a huge part of their "unified" strategy. Unless you can show me concrete evidence MS wants to pull out of mobile already I'm going to have to assume you pulled this out of your nether regions.
Stephan Elop is gone and Microsoft is doing everything they can to have their services preinstalled on Android devices. Windows Phone is pretty much a non factor in terms of marketshare. They are not pulling out of mobile, but they are taking a platform agnostic approach.

As for this deal, it would have more impact on the Surface line than consoles in the near future. Companies pay for tech from competitors all the time. So long as the previously agreed upon rates do not change, nobody is going to care. PS5 is too far down the line to be an immediate concern, and NX is more likely to use Qualcomm or Mediatek chips, unless the rumors surrounding that hardware have changed very recently.
 
I could see how this would make sense long term for cloud computing, visual computing, and even better security via tighter integration between Windows and its hardware.

I think the gaming side of this is a small consideration.
 
Yeah I think... People just need to realize Microsoft and Sony as companies, don't hate each other as much as people think they do. They do business dealings like all the time. Sony makes money off Microsoft, Microsoft already makes money off Sony

The world will keep spinning in the right direction, it's OK haha

Major corporations do not participate in console/fanboy wars.

They just profit from them.
 
Would Sony go Nvidia for PS5 if this happened?

Sony shipped laptops with Windows
Apple uses Sony image sensors for iPhone
Microsoft uses Blu-Ray for Xbox One

These companies don't go out of their way to avoid dealing with each other, even though they compete in certain markets. I think AMD is willing to offer cheaper technology, which is what Sony CE cares about, and they can deliver a complete package. I wouldn't be surprised if the next PlayStation is another AMD APU box with another mediocre CPU.

The thought of Intel buying AMD, if they even can, is a scary one.
 
As its mentioned in the article MS pays AMD roughly $100 for each xbox sold. Its more than likely that there is a similar deal set up with Sony

Article is very possibly wrong. AMD only takes small royalty. Majority of that price goes to factories who are actually producing the chips.
 
I could see how this would make sense long term for cloud computing, visual computing, and even better security via tighter integration between Windows and its hardware.

Yea, if this is remotely close to being true, it'll be heavily be on the server side for them as they continue to build up their cloud business which already pulls in a ton of money. Becoming more efficient there could save them millions in operating costs.
 
This seems like it would be a bigger deal for their Surface tablets and phones to be honest.

Edit: Oh yea, and their whole Azure push as well. With all those data centers it could be hugely beneficial.
 
I think hint this would be great for AMD, having the financial strength of Microsoft behind their backs so they can start competing with Intel and Nvidia for once. Why hasn't Microsoft, App,e or Samsung bought them out yet?
 
This is interesting, the saving on Azure for example would be worth it alone.

I'd love to think that if they bought AMD, the next xbox would be an absolute power house due to the price being a lot lower for them. Considering they've been out beaten in power this gen, it'd make for an interesting next.
 
Could this be the beginning of the end of the Wintel empire? I don't imagine Intel would be very pleased with MS becoming a big producer of CPUs. What's to stop MS from tailoring their OS toward AMD chips?

If MS goes down this route, I don't think it will be to compete with Intel (or nVidia) in the consumer space
 
Yeah I think... People just need to realize Microsoft and Sony as companies, don't hate each other as much as people think they do. They do business dealings like all the time. Sony makes money off Microsoft, Microsoft already makes money off Sony

The world will keep spinning in the right direction, it's OK haha

This ok :p

giphyrustlednmjoz.gif
 
Give AMD the cash required for the R&D to compete with Nvidia because as it stands they arent exactly competing with them

But what if Microsoft ties software features to AMD's hardware? That would be unfair for Nvidia and Intel. Or isn't that possible? (Honest question)
 
Certainly believable as MS would save itself money and get itself in the door in other markets in which it needs to expand to. But would be potentially dangerous to them in the form of Invida and Intel getting pissed then going to Sony or at least working very very closely with them. Can't forget about Samsung lurking about as well.

The funny thing is that they might be able to buy AMD, an advanced hardware maker for less than what it cost them to buy a game, lol.

Regardless if this happens, war is coming.
 
This is interesting, the saving on Azure for example would be worth it alone.

I'd love to think that if they bought AMD, the next xbox would be an absolute power house due to the price being a lot lower for them. Considering they've been out beating this gen, it'd make for an interesting next.

Yea, they would afford to shove in an extra 100$ worth of components but keep the same price.
 
That's not how you kill PS5. That's how you kill yourself. If NVIDIA announces a ground-breaking tech and AMD cannot match it, then Microsoft will forever be the low-end console in the face of such times.

Will Sony even move to NVIDIA? Is AMD even for sale? There are a lot of interesting scenarios that will be played, but in the large scheme of things buying the company that makes your chips doesn't limit others in any way possible.

As it stands, AMD is the only viable chip maker to go with if you're a console platform holder, because they're the only ones making cheap custom APUs which are perfect for cost reduction. It would definitely be worrisome for Sony if they can't be a customer anymore, or are in the least barred from using the latest AMD tech.
 
So MS would make their money back after selling another 18m consoles? That's not even mentioning Sony's cash. Seems a no brainier to me.

Are those figures in the OP correct? I mean going by that logic wouldn't it also make sense for Sony to buy AMD. I mean they have sold double the XB1 already. Surely they wouldn't have to sell that many more to break even?
 
Sony shipped laptops with Windows
Apple uses Sony image sensors for iPhone
Microsoft uses Blu-Ray for Xbox One

These companies don't go out of their way to avoid dealing with each other, even though they compete in certain markets. I think AMD is willing to offer cheaper technology, which is what Sony CE cares about, and they can deliver a complete package. I wouldn't be surprised if the next PlayStation is another AMD APU box with another mediocre CPU.

The thought of Intel buying AMD, if they even can, is a scary one.

What people keep missing here is that this isn't comparable to buying an OS license, or a camera or something to put in a device, the console designers work directly with the company they are getting their SoCs from to design the SoC for their system, which is the main guts of the system. This would mean MS would know about the development of their competitor's consoles every step of the way, and I'm not sure Sony or Nintendo would be okay with that.
 
Monopolies and mergers would have a field day

MS would make

Windows OS DX12
Windows search engine
Windows Office suite

PC X86 CPU (with DX12 special shit)
PC GPU (no doubt windows enhanced)

Say goodbye to competition in the PC space, (if it ever really existed)
 
Nonsense. Source? It seems to me mobile is a huge part of their "unified" strategy. Unless you can show me concrete evidence MS wants to pull out of mobile already I'm going to have to assume you pulled this out of your nether regions.

Ballmer’s relations with the board hit a low when he shouted at a June meeting that if he didn’t get his way he couldn’t be CEO, people briefed on the meeting said. The flare-up was over his proposed purchase of most of Nokia Oyj, and part of an ongoing debate: Should Microsoft be a software company or a hardware company too?

Several directors and co-founder and then-Chairman Bill Gates -- Ballmer’s longtime friend and advocate -- initially balked at the move into making smartphones, according to people familiar with the situation. So, at first, did Nadella, signaling his position in a straw poll to gauge executives’ reaction to the deal. Nadella later changed his mind.

...

Ballmer was so loud that day in June his shouts could be heard outside the conference room, people with knowledge of the matter said. He’d just been told the board didn’t back his plan to acquire two Nokia units, according to people with knowledge of the meeting. He later got most of what he wanted, with the board signing off on a $7.2 billion purchase of Nokia’s mobile-phone business, but by then the damage was done. Concerns over Microsoft’s direction had been mounting for months. For some directors, the question was whether Ballmer should still lead, according to people close to the board.

Last Straw

They were frustrated by his tendency to talk more than listen, the people said, and his reaction to the pushback on Nokia was for some the last straw. The board rejected the first deal as too expensive and complex, including not only the handset division but also a mapping unit Microsoft didn’t need. Even without maps, Fitch Ratings called the price “excessive” in a note yesterday, citing a deterioration in the user base for Windows-based phones.

...

Differences emerged over the move into hardware, according to people familiar with the matter. Gates didn’t agree that the world’s largest software maker should produce its own mobile devices, and Ballmer was hurt that Gates didn’t back him, the people said. At November’s shareholder meeting, General Counsel Brad Smith had to persuade them to take the stage together.
Don't get me wrong: It's too late for Microsoft to pull out of hardware, but it's pretty clear the Nokia deal was the end for Ballmer. Nadella is stuck with it (for now).

http://www.bloomberg.com/news/artic...nadella-manages-legacy-of-ballmer-board-split
 
The thought of Intel buying AMD, if they even can, is a scary one.

Intel doesn't care enough to buy AMD, and wouldn't pass anti-trust even if they wanted to.

Apple could buy Intel with the cash in their couch cushions purely for their fabs and screw over the entire PC market in one fell swoop. Be afraid of that.
 
Are those figures in the OP correct? I mean going by that logic wouldn't it also make sense for Sony to buy AMD. I mean they have sold double the XB1 already. Surely they wouldn't have to sell that many more to break even?

I think whoever is buying AMD also needs to have a boatload of money ready for R&D investment, because AMD needs to turn things around. Could Sony afford to buy them AND afford the R&D needed to make the acquisition worthwhile?
 
Stephan Elop is gone and Microsoft is doing everything they can to have their services preinstalled on Android devices. Windows Phone is pretty much a non factor in terms of marketshare. They are not pulling out of mobile, but they are taking a platform agnostic approach.

As for this deal, it would have more impact on the Surface line than consoles in the near future. Companies pay for tech from competitors all the time. So long as the previously agreed upon rates do not change, nobody is going to care. PS5 is too far down the line to be an immediate concern, and NX is more likely to use Qualcomm or Mediatek chips, unless the rumors surrounding that hardware have changed very recently.

Well in regards to NX AMD pretty directly said they want the 3DS successor contract.
 
Stephan Elop is gone and Microsoft is doing everything they can to have their services preinstalled on Android devices. Windows Phone is pretty much a non factor in terms of marketshare. They are not pulling out of mobile, but they are taking a platform agnostic approach.

As for this deal, it would have more impact on the Surface line than consoles in the near future. Companies pay for tech from competitors all the time. So long as the previously agreed upon rates do not change, nobody is going to care. PS5 is too far down the line to be an immediate concern, and NX is more likely to use Qualcomm or Mediatek chips, unless the rumors surrounding that hardware have changed very recently.

Stephen Elop leaving can be interpreted in more than one way. His primary function was to make the Nokia acquisition happen. Once that was accomplished he was on his merry way. I dont see him leaving as anything close to a sign that MS is giving up on phone hardware. As for their efforts to get software installed on Android, so? They've been doing the same by nibbling around the edges with Office installs on Macs & then iPhones for yrs. Platform agnostic software is not necessarily mutually exclusive from also selling their own hardware as well.

As for the impact this deal may have on consoles vs surface (& PC in general) you're preaching to the choir...i posted a few posts back about how this deal means a highly scalable Zen would fall into MS's laps for use in Surface (& likely Hololens as well).
 
Even if Microsoft buys AMD, Nintendo and Sony can still buy their parts. Problem being is that they might be charged more than normal = Higher Console costs.
 
Damn, Microsoft's pockets are just too deep. Here's some introspective: if Xbox completely failed, Microsoft would still be sitting on a mountain of cash & say "at least we tried." If PlayStation completely failed, there might not be a Sony anymore. How scary is that?
 
Intel doesn't care enough to buy AMD, and wouldn't pass anti-trust even if they wanted to.

Apple could buy Intel with the cash in their couch cushions purely for their fabs and screw over the entire PC market in one fell swoop. Be afraid of that.

First part, yeah, Intel actually likes AMD being around since they escape monopoly status even if AMD CPUs don't really compete.

Second part, no, Apple could not buy Intel.
 
Nah MS would rather get the $$$ off of Sony and Nintendo than outright refuse them.

The amount of money would be inconsequential to MS total profits at large. It would be far more advantageous to outright fuck up your competitors in many ways (BC, years of SDK work, etc).
 
I'm not sure this acquisition would ever go through with US anti competitive laws. It also would be a terrible business move for a software company.
 
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.
Reminds me of the people who thought because Ms bought Mojang that they would pull Minecraft from all competitors stores and make it MS device exclusive lol. Some people really have some weird thoughts that these companies play company warz with each other.
 
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