Navi Made in Colab with sony, MS still Using it?

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ironmanDX said:

thismeintiel said:

It's not poor, it's how bargaining works.  If AMD is convinced by Sony that they have an incredible chance to sell at least 85M units, which is the lowest they have ever sold, they will give them better prices upfront.  They will still make their money even at a lower profit margin AND have the added PR of being what powers the #1 console of that gen.  And, yes, as prices fall, Sony will be able to continue to make deals for cheaper prices.  They aren't fixed. Of course, we also don't know how much involvement Sony actually had in Navi's development.  If Sony shouldered some of the cost of its development, they would most likely use that as reasoning for cheaper prices, too.

MS doesn't have the same advantage, cause only Lord knows how much they will sell.  Could be around what XBO sells or it could be much less.  They are still going to want to make their money from those chips, so will sell them with a higher profit margin.  If the XB2 is a success, then MS can make better deals with AMD.

Yes, the Kinect helped add to the price of the XBO, but MS still chose not to subsidize it when they dropped the camera, instead matching the PS4's price, even though it was noticeably less powerful.  Only after months of being outsold by the PS4 did they start having random firesales, dropping the price to ~$349 every so often.  Of course, by that time, they were probably already at break even with a $349 price.

They'll both sell out of the initial launch devices though. It makes absolutely no sense for Sony to pay for or enter a deal for 85 plus million chipsets that will be phased out. Even if they are guaranteed to sell them all. Talk about how bargaining works all you like, it would be a foolish bargain.

It also makes no sense for amd to back one horse over the other, even if PS5 is more likely to sell a higher volume than neXtbox. They're in the business to make money. Again, it would be foolish. No one has a crystal ball here. To be clear though, I do believe that the PS5 will sell more it's just not written in stone. No one expected the 360 to be as successful as it was. Nor the Wii.... The Switch... The og PlayStation... Anything can happen.

There is a fuckton of cash to be made by AMD not just through chip sales... But through licensing of I.P and lump sum payments... And that is cash irrespective of console sales. AMD doesn't do the design work for free... Especially when porting their libraries to smaller processes.
So while we are gearing up for the Xbox Two and Playstation 5, AMD is likely working on new chips to go into the "Pro" and "Slim" consoles as we speak.