Former AMD exec: Xbox One APU project worth over $3 billion

[g911turbo]

Soleron said:

kowenicki said:

why cant people understand this? Its basic.

it doesn't mean ms paid $3bn or owes $3bn

it means the deal to provide it could be worth $3bn to the company.

it is entirely dependent on sales of the new consoles.

 

The deal is valued at 3bn over multiple years.

Yes. They probably project 70m consoles for that number as well, good luck reaching that this gen.

$3bn isn't the difference between AMD staying afloat and AMD defaulting either. It's a finite and mostly known amount of cash now so it cannot increase the value of the company either.

True.  But at the end of the day closing this deal vs. not was a good thing for AMD revenue.  I have a funny feeling that margins are slim upfront however.