(Rumor) Sony Had No Option But To Release A PSNeo

[Bryank75]

CosmicSex said:

This doesn't make sense. There is always a choice. And there is no business sense to the premise. After all, if Sony makes the rumored console, at the rumored price, they would always be making less money then cutting the current model to 299. It is hard to imagine a scenario where a 399 neo is more profitable than a 299 PS4.

The only thing I can think of is if either Neo is at least 450 or if they can gett the cost of production down substantially (using magic).

In fact now that I think about it, the premise of yhis article makes me doubt that the Neo is even real.

Also the idea that AMD would abandon production of their fastest selling console semiconductor is asinine. 

If AMD doesn't wan't to make the chip anymore and do not have a contract holding them to it, they can certainly do that. The chip may have sold very well but it is outdated and unsuitable for a fast moving market. 

The way the cost reduction works is due to economies of  scale, this is the economic theory that the larger your production capacity for one item, the cheaper it becomes to produce per item. If they kept just one production line open for the old chips, they would need different equipment, different equipment and different techniques as well as people trained for that process.... that adds up to huge costs. It is better to have a streamlined process, all the same.