Media: Intel missed out on a contract to produce chips for the PlayStation 6 and lost $30 billion as a result
In 2022, Sony was in negotiations with several companies regarding chip production for the yet-unannounced PlayStation 6 console, according to Reuters sources. One of the most likely candidates was Intel, but it failed to reach an agreement with Sony on the terms of cooperation.
Reuters reports that negotiations between Sony and Intel lasted several months. Executives from both companies, along with dozens of managers and engineers, were involved. The main obstacle to the deal was the price Intel wanted to charge for the chips—Sony considered it too high. Ultimately, Reuters writes that the makers of PlayStation opted to renew their contract with AMD instead.
It is reported that losing the contract dealt a significant blow to Intel's chip manufacturing division. For many years, the company outsourced this task, but it recently began producing part of the products independently. Intel was counting on the deal with Sony to bring in $30 billion over the lifetime sales of the PlayStation 6, which would help reduce losses in the currently loss-making division. Intel also hoped that this contract would attract new clients.
An Intel spokesperson told Reuters that they "categorically disagree with the characterization of the situation within the company" and would not comment on current or potential negotiations with clients. Sony did not respond to Reuters' request.
