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[Unknown Soldier]

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

 

[FordGTGuy]

You guys saying this is strange for MS are missing the big picture.

MS is betting big on cloud computing (IaaS/SaaS) and that requires processors and graphics chips. They are also working on devices in mobile computing such as Lumia, Surface, and HoloLens, plus that new type of phone that can dock and essentially act like a full PC. It makes sense to be able to control major costs in server hardware over the long term and you can safely bet this is just the beginning of Microsoft's developments in mobile hardware.

It may be worth considering Nvidia's biggest revenue drivers have been GPUs (visual computing) and SOCs for mobile computing, plus they are advancing their cloud-powered GRID to deliver games from the cloud, developing superchips for cars (working with Tesla now), and they are using Android for the OS in their SHIELD gaming PCs. They're expanding in a lot of directions and could present a long-term threat to MS on multiple fronts, especially when AMD is not investing as much into research and leaving Nvidia largely unchallenged to corner the market and control costs on key technology in visual computing.

Should just be put in the OP, spot on.

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

Surface Pro 3 is a better device, I'm not sure of your point.

 

[BLACK AMERICAN PSYCHO]

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

So why would you that then? Why should they stop? They make fantastic hardware outside of the og 360s.

 

[Captain Tuttle]

Why do people think the companies are run by fanboys who don't want to make business with other companies just because?

You answered your own question

Interesting rumor though

 

[GifGafIsTheBestGaf]

Currently, there are 150,000 members on NeoGaf. If we all pooled in just over $10,000 we could buy AMD.

today will be a small step in GAF's history for a bigger and brighter tomorrow

my swift code is ready

 

[etta]

You guys saying this is strange for MS are missing the big picture.

MS is betting big on cloud computing (IaaS/SaaS) and that requires processors and graphics chips. They are also working on devices in mobile computing such as Lumia, Surface, and HoloLens, plus that new type of phone that can dock and essentially act like a full PC. It makes sense to be able to control major costs in server hardware over the long term and you can safely bet this is just the beginning of Microsoft's developments in mobile hardware.

It may be worth considering Nvidia's biggest revenue drivers have been GPUs (visual computing) and SOCs for mobile computing, plus they are advancing their cloud-powered GRID to deliver games from the cloud, developing superchips for cars (working with Tesla now), and they are using Android for the OS in their SHIELD gaming PCs. They're expanding in a lot of directions and could present a long-term threat to MS on multiple fronts, especially when AMD is not investing as much into research and leaving Nvidia largely unchallenged to corner the market and control costs on key technology in visual computing.

Well said.

 

[cebri.one]

Why? It's entirely plausible.

It doesnt fit with any reasonable strategy. Apart from being two companies with completly diferent business models, AMD is a sinking ship, MS shareholders don't want a billion dollar hole in their balance sheet.

There is no competetive advantage to be gain by MS. There is no incentive even to make an investment Apple style.

 

[Shpeshal Nick]

You guys saying this is strange for MS are missing the big picture.

MS is betting big on cloud computing (IaaS/SaaS) and that requires processors and graphics chips. They are also working on devices in mobile computing such as Lumia, Surface, and HoloLens, plus that new type of phone that can dock and essentially act like a full PC. It makes sense to be able to control major costs in server hardware over the long term and you can safely bet this is just the beginning of Microsoft's developments in mobile hardware.

It may be worth considering Nvidia's biggest revenue drivers have been GPUs (visual computing) and SOCs for mobile computing, plus they are advancing their cloud-powered GRID to deliver games from the cloud, developing superchips for cars (working with Tesla now), and they are using Android for the OS in their SHIELD gaming PCs. They're expanding in a lot of directions and could present a long-term threat to MS on multiple fronts, especially when AMD is not investing as much into research and leaving Nvidia largely unchallenged to corner the market and control costs on key technology in visual computing.

This guy gets it.

Sort of. He's on the right track. They bought Nokia to get their IP in creating mobile hardware. THAT was the first step. This would be the second.

Also, they're not creating a phone that can dock as a PC. Every Windows 10 phone will run continuum and act as a PC. Its a software feature of Windows 10.

 

[Pathfinder]

It doesnt fit with any reasonable strategy. Apart from being two companies with completly diferent business models, AMD is a sinking ship, MS shareholders don't want a billion dollar hole in their balance sheet.

There is no competetive advantage to be gain by MS. There is no incentive even to make an investment Apple style.

You should really read Paco's post on the matter.

 

[DopeyFish]

It doesnt fit with any reasonable strategy. Apart from being two companies with completly diferent business models, AMD is a sinking ship, MS shareholders don't want a billion dollar hole in their balance sheet.

There is no competetive advantage to be gain by MS. There is no incentive even to make an investment Apple style.

You aren't looking at the big picture.

 

[etta]

It doesnt fit with any reasonable strategy. Apart from being two companies with completly diferent business models, AMD is a sinking ship, MS shareholders don't want a billion dollar hole in their balance sheet.

There is no competetive advantage to be gain by MS. There is no incentive even to make an investment Apple style.

Acquisition of "sinking ships" are not uncommon, or unheard of. And Microsoft has the money to spruce up the R&D department.

 

[FordGTGuy]

Sort of. He's on the right track. They bought Nokia to get their IP in creating mobile hardware. THAT was the first step. This would be the second.

Also, they're not creating a phone that can dock as a PC. Every Windows 10 phone will run continuum and act as a PC. Its a software feature of Windows 10.

Steve Balmer pushed for the purchase of Nokia, which Satya was against.

Buying AMD could be a part of the tough decisions that Satya was referring too.

 

[LordOfChaos]

I've always read/heard that they hate each other anyway, despite being lumped together as "Wintel" for years. People used to think they were in bed together but that didn't mean they got along. Dvorak used to mention that a lot.

You mean in terms of employee perception? Perhaps. But they're still way in bed buisness-wise.

 

[GatticusFinch]

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

What Microsoft hardware has been that bad?

Microsoft's hardware has always been good to great, but they inevitably fuck it up on the software or marketing side. They made a number of, frankly, revolutionary hardware products--intellimouse (first optical, scroll wheel, front and back buttons), tablet pc, natural keyboard, pixelsense, kinect--and then everyone shits on them "cuz lawl zune tho." Zune was awesome. If anyone at Microsoft had half a brain on how to market it with the Zune Pass, it would have stuck around, and what do you know, literally everyone is trying to put out subscription music service now.

 

[dragonelite]

Sort of. He's on the right track. They bought Nokia to get their IP in creating mobile hardware. THAT was the first step. This would be the second.

Also, they're not creating a phone that can dick as a PC. Every Windows 10 phone will run continuum and act as a PC. Its a software feature of Windows 10.

Would be cool if they could make x86 cores for mobile phones.
Maybe in 5~10 years your mobile phone could act like a work laptop running visual studio.

 

[Kaydan]

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

Okaaaayyy... Why then?

 

[Ploid 3.0]

At first I thought it wouldn't matter, but after seeing the poll and thinking about the possibility of Microsoft raising the price of chips for future use I changed my mind. PS5 needs to be BC with PS4. PS4 needs to get cheaper, etc. I don't mind what it would change for the PC market because it can only help AMD and put pressure on Nvidia.

 

[DSN2K]

Intel may eventually have to help fund to Keep AMD afloat, as bizarre as that sounds. They need them around more then anyone else.

 

[Deadstar]

That would be too much power for one company.

 

[etta]

That would be too much power for one company.

How so?

 

[FordGTGuy]

That would be too much power for one company.

Microsoft aren't even close to the power Google wields across markets.

 

[SenjutsuSage]

Well, If Microsoft can't make money on Xbox One, they'll just make money off PS4. lol.

Does Sony even make money off PS4?

Microsoft makes more than enough money on the whole.

 

[Crayon]

I don't know if it's true. My butt is puckering at just the thought, though. They'll probably screw up whatever they're planning and we'll all be okay.

 

[hesido]

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. It the company develops appropriate chips for smartphones and tablets, Microsoft’s savings could be even higher.

Isn't this assuming the chips are close to 0 dollars to make? If AMD was raking in that much cash as profit I don't think it would be struggling.

 

[DiiGoliath]

NeoGAF CEO Tyler Malka buys AMD for $2 billion

Welcome to a new era. Believe in the future.

 

[Faustek]

Does Sony even make money off PS4?

Microsoft makes more than enough money on the whole.

according to MS/Sony both of them made money nearly straight away.

 

[etta]

Isn't this assuming the chips are close to 0 dollars to make? If AMD was raking in that much cash as profit I don't think it would be struggling.

I think they meant Microsoft sends AMD 100$, which they take a small cut and send the rest to manufacturers.

 

[Duxxy3]

That would be too much power for one company.

Anti-trust will keep them straight.

 

[mmazurkiewicz]

I'm betting AMD gets acquired in the next 6 months. Too many rumors of an acquisition lately for none of it to be true.

 

[cebri.one]

You aren't looking at the big picture.

Intel provides the hardware for MS Azure servers. AMD is lagging way behind, buying the company would be just a start, they'd need to throw billions in R&D and then hope they can catch up. It would be way more reasonable to make a long term deal with Intel.

 

[hesido]

I think they meant Microsoft sends AMD 100$, which they take a small cut and send the rest to manufacturers.

But they go on to mention that they already paid more than a billion dollars to AMD, and they would be saving "that" billion (if I'm understanding right) every year if they bought it, which doesn't make sense to me the way I understand it.

Btw, if this happened, Nvidia and Intel would be on their toes, as the OS itself and "DirectX" could be made to work better on certain hardware...

I hope they don't get acquired by anyone and make it through themselves, I don't like the kind of uncertainty an acquisition would bring to PS5.

 

[Jarmel]

Kinda surprised that Microsoft or Sony hasn't tried to do this earlier. Seems like a pretty solid decision.

 

[Duxxy3]

Intel provides the hardware for MS Azure servers. AMD is lagging way behind, buying the company would be just a start, they'd need to throw billions in R&D and then hope they can catch up. It would be way more reasonable to make a long term deal with Intel.

If things continue as is for AMD and they get dissolved, there won't be an Intel to make a deal with. They'll be broken up as a monopoly. Intel needs AMD to stay in business.

 

[etta]

But they go on to mention that they already paid more than a billion dollars to AMD, and they would be saving "that" billion (if I'm understanding right) every year if they bought it, which doesn't make sense to me the way I understand it.

Well, depends if they keep the same manufacturers. Would they actually need to keep them or is it possible to get new manufacturers to produce the Xbox One chips?.

Kinda surprised that Microsoft or Sony hasn't tried to do this earlier. Seems like a pretty solid decision.

Not sure someone like Sony could afford the extra investments needed to make the purchase worthwhile. I mean, Xbox invested 1 billion in Xbox One titles alone, imagine how much money Microsoft could invest across a wide range of products (servers, mobile, console chips... etc.)

 

[FordGTGuy]

Intel provides the hardware for MS Azure servers. AMD is lagging way behind, buying the company would be just a start, they'd need to throw billions in R&D and then hope they can catch up. It would be way more reasonable to make a long term deal with Intel.

Microsoft invests enough money in R&D to build and operate a Nimitz-class super carrier, investing a little more isn't that much trouble.

 

[Hoje0308]

Are people jokingly voting for the first option?

 

[krazykei]

I'm betting AMD gets acquired in the next 6 months. Too many rumors of an acquisition lately for none of it to be true.

I dunno about 6 months but I don't doubt amd is shopping around for a potential buyer. Microsoft sounds like one of the more realistic buyers though. The whole dx12 support amd has been pushing instead of mantle makes the rumor even more believable.

 

[virtualS]

This is bad news. AMD need to remain independent and competitive for the sake of the industry.

 

[Ushay]

Microsoft needs to stop trying to make hardware. Ugh.

I say this as someone who owns and likes a Surface Pro 2.

Most of what MS builds is usually excellent quality. They should be doing more of it.

 

[Elios83]

Everything can happen but in a market where hardware companies are trying to become software companies because the environment is really challenging and software/services is where you really make money, the idea of a software company trying to buy a hardware maker to get all the headaches a hardware company usually has, doesn't make a lot of sense.
Reminds me a bit when 3dfx wanted to make their boards in house just because they thought their margins would be better...they weren't able to handle that business and that proved fatal for that company.
Right now they have freedom, they can choose whatever is the best option for them among different makers for each product they want to make, if they buy AMD they'll have to do everything in house and the ending result might not be always optimal.
AMD is best suited for companies like Samsung or Intel, not Microsoft.

 

[FordGTGuy]

This is bad news. AMD need to remain independent and competitive for the sake of the industry.

Being bought by Microsoft would make them even more competitive and would stop them from bleeding money.

 

[DiiGoliath]

Being bought by Microsoft would make them even more competitive and would stop them from bleeding money.

+1

 

[shandy706]

Hey, imagine the fast turn around in AMD drivers and the R&D their GPUs would now have!!

 

[Crayon]

The whole dx12 support amd has been pushing instead of mantle makes the rumor even more believable.

Nah that doesn't really mean anything. They're suggesting dx12 and vulkan as targets because they're based on the mantle spec anyway. No need for three competing apis when one would be better for almost everyone.

 

[Nzyme32]

It would be a shame if this happened and then ended up with MS preventing development of other standards in favour of propping up Windows only standards such as DX only rather than Vulkan and anything else. That would be pretty sad on the PC side.

The whole dx12 support amd has been pushing instead of mantle makes the rumor even more believable.

That would be because Mantle is no more and is in essence succeeded by Vulkan - which AMD is supporting

 

[etta]

Hey, imagine the fast turn around in AMD drivers and the R&D their GPUs would now have!!

Exactly! Imagine how amazing the GPU drivers would be with that Microsoft software knowledge capital.

 

[Koyuga]

I am all for a world that has competitively priced Intel and Nvidia products. AMD needs to stay around, be it independently or run by Microsoft.

 

[Souldestroyer Reborn]

This would be interesting.I mean for Microsoft:

- It would save them 1$ minimum per year going by their numbers.

- It would put Sony under pressure, who just so happens to be their main competitor.

I wonder if the contract Sony has with AMD would still be valid if a buyout was to happen?

I guess instead of saying, if you can't beat em, join em. Microsofts motto is if you can't beat em, buy them. Or buy whoever you can to fuck up your rivals.

 

[The Abominable Snowman]

Microsoft is transforming as a company and it is very exciting to see.

I want to see more Microsoft embedded devices come out. The Surface Pro was an excellent start.

I hope that they either don't do away with Windows Phone, or offer their own marketplace on Android. Lots of MSFT rumors swirling about...

 

[GatticusFinch]

Intel provides the hardware for MS Azure servers. AMD is lagging way behind, buying the company would be just a start, they'd need to throw billions in R&D and then hope they can catch up. It would be way more reasonable to make a long term deal with Intel.

AMD is lagging way behind in almost everything, though. I'm thinking of buying a few thousand shares because a buyout or spinoff is almost inevitable. The breakup value of the company is probably worth more than the book value at this point. Shit, the entire company is worth substantially less than what it paid for ATI.

The biggest problem is that AMD is beholden to TSMC whereas Intel has its own fabs and can push development faster.