I've got no clue where people come up with the ridiculous things they say, but these APU's are not costing AMD $10, or $25. AMD has a 37% gross margin on their products for their past fiscal year. Furthermore, since the PS4 has released (which is a pretty substantial portion of AMD's sales), their gross margin has decreased to about 35%. Not 600%, not 300%, but 35% (which you may even deduce means the margin on PS4 parts is even lower than other items, thus lowering the overall %, but we will use 35% for simplicity).
So, what do you get for Cost of Sales (which does not include R&D) for the APU? With the numerous sites I've looked at, the APU is costing Sony ~$100, meaning it is costing AMD ~$65. I mean, if you figure in a 15% discount rate on the cash flows, you are talking likely over 90 million consoles in 7 years in order to recoup the $2 billion R&D at $35 gross margin per chip.
$65 in parts, and $35 to make back the R&D...there most certainly is not $25 available to lower the cost that Sony has to pay.
Money can't buy happiness. Just video games, which make me happy.
