(Update) Rumor: PlayStation 5 will be using Navi 9 (more powerful than Navi 10), new update Jason Schreier said Sony aim more then 10,7 Teraflop

[Bofferbrauer2]

Intrinsic said:

Bofferbrauer2 said:

But less so then this gen.

This gen AMD was pretty dependent on the income from the consoles until 2018 (took a while until Ryzen could really take off), which means Sony and Microsoft had a very dominant position to haggle the prices. Now, with Ryzen and Epyc being huge hits and the money rolling in, they won't be inclined to lower the prices nearly as much as they did this gen - simply because they don't have to anymore.

Really, the rumors were that AMD was gaining less then 1$ per chip sold for the PS4 and XBO consoles in 2016 and 2017, and they only agreed to such prices since they had to buy enough wafers from GlobalFoundries, which otherwise would have cost them even more.

But now that's not a problem anymore, and AMD is sustaining itself from the CPU market alone by now, giving them a much better position in the price negotiations then they were last gen. AMD will want to make some bucks out of the deal this time around and not just use them to stay afloat, that's for sure.

Besides, the official prices you'll see are always only valid if you buy at least 1000 of them, not for single chips. Hence why the price for the consumer varies quite a bit between the different shops and suppliers. Also, using the prices from some leaks for the Zen2/Ryzen 3 as basis is very flawed, especially since after just a little scrutiny those prices are impossibly low (AMD wouldn't be able to clear their stock of hardware anymore the moment they'd announce them, undercutting their existing hardware by over 50% in most cases).

Thats definately not th case. Ever heard the saying "the first chip cost $5B and every other one cost $5" The actual cost of  processor is less tha $10 on a material cost basis, what is expensive is the costof the technology that goes into making those chips. But even then its owhere near as bad as you desibe.

Sony/MS can be paying anywhere from $40 - $150 to AMD for each APU. Just know AMD makes over or around half of whatever they are paying as profit for themselves while the other half goes to whichever foundry makes them.

I know that fully well.

That being said, AMD was forced to pay up for a specific amount of wafers from Globalfoundries upfront in 2015, whether they'd actually need them or not (and even pay extra if they produce chips at other foundries). Thus, AMD sold their chips to Sony and Microsoft at the lowest possible price for them to ensure they don't need to pay for unused wafers. However, since GF doesn't have a 7nm process, the deal got eased a lot and the Ryzen/Epyc chips already fulfill it, thus having no need to go as low with the price as they did this gen.