So basically AMD's about to grow in size exponentially. A sure thing - these contracts with the console manufacturers. I.e. they're going to have to start manufacturing the CPUs and GPUs themselves - instead of simply licensing their designs out and receiving minor royalties - up to $120 million per year over the past few years. They've licensed out their designs to Gamecube, Wii, Wii U, and Xbox 360 in total.
This is good. AMD's going to become a major chip manufacturer - it's going to need investment money - not a problem given its contracts for Playstation 4 and Xbox 3. Apparently they can not license out Intel's x86-based CPUs - but they can sell them.
But more importantly for Sony - it means they do not have to invest $2 billion in factories to build the GPUs and CPUs - like it did with Playstation 3. That's why they sustained much losses. They certainly paid $1 billion for the Cell factory - and probably something like that for the GPU factory, which is similarly sized. Also - they did not have to pay $400 million to design the CPU - like they did with Cell. Thus - $2.4 billion immediately saved by Sony in this deal. Xbox 3 - something like that too.
It also means AMD's going to become one of the world's leading chip manufacturers. MIPS I believe is the leader right now.
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