By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

A term a lot of companies I work with use is LTR, or Life Time Revenue. Lets say they anticipate the Xbox One to sell 100M units over the course of 8 years, with an average selling price (ASP) of $30. That would give you 3B in LTR which the sales team would claim as a win today.

Some companies even pay bonuses based on this LTR number, despite the fact that it cannot be proven until "8 years down the road". Usually a LTR is based off of solid reasoning. Not just a random guess. Still a guess, but educated.



Around the Network
tres said:
Adinnieken said:
tres said:
amd probably gave microsoft shit apu lol.. it was funny considering how they were talking up the ps4 chip. microsoft wouldve did better going the arrogant nvidia route and one upping sony with dx 12.

Your post is completely ignorant of the fact that both AMD and Microsoft share a long relationship.  Microsoft wrote support for the AMD x64 CPUs long before anyone else did.  They've maintained a close relationship on DirectX for a number of years.  I don't think AMD is going to piss on their relationship with Microsoft.

The Xbox 360 had an engineered CPU and GPU.  Both were highly specialized.  Neither was off the shelf.  The highly specialized nature of both allowed the Xbox 360 provide the same level of performance as the unquestionably supperior in raw power PS3. 

The Xbox One CPU and GPU I don't doubt are less specialized than the Xbox 360's.  Based on what we've learned so far, especially during the Architectural panel for the Xbox One, it is an extremely specialized CPU/GPU.  It'll be interesting to find out just how much.

That came about because of their relationship. 

if your girlfriend or boyfriend was bragging on how sexy your neighbor was  would you question your relationship? lol

No, because it doesn't matter what might be thought of my neighbor.  What matters is our relationship, how we communicate together, and the product of our relationship.

A person who competes in body building competitions doesn't make a good marathon runner.  Someone may feel the body builder is sexy, but that doesn't mean he'll win the race.  It just means he's got a lot of muscles.  In the end, no matter how sexy one is, people like a winner.



Woah, Yo John is a mod now? Quick warn me for not being on topic ;)



I LOVE paying for Xbox Live! I also love that my love for it pisses off so many people.

drkohler said:
Imaginedvl said:
VGKing said:
Great deal. I imagine the Sony deal is similarly priced.

Wasn't R&D for the Cell processor alone in the Billions of dollars? LOL

yah this deal was absolutly insane. Very good for the industry in general I would say.

Cell wasn't that expensive to develop, around $400mio, shared by IBM, Sony, Toshiba.

Slow down, it is okay, no need to jump out of your chair :)
It was actually a GOOD comment even with my Halo avatar. I never said it was expensive... I said it was GOOD for the industry (alias everyone)...



ironmanDX said:
Jared19 said:
ironmanDX said:
Jared19 said:
Yea well fact is Sony's is Better who cares how much it costs!



It might not be, especially after hearing this. This could be "just another rumor," but if true, I doubt a company that has been in the PC busines for decades would invest 3 billion into something like this and only have it coming off second best. They would have been better off going with a weaker APU and putting the price of the Xbox ONE down instead to be more competitive/under-cut Sony further that case. There are rumors and nothing has been 100% confirmed. Best wait till E3 or later before we make those,  "my APU is better than yours" talks.

id still go with what i said remember what AMD said and they also said Ps4 will be the most powerful of its kind but even so i say it is better than the xbox!


The Sony fan base needs to come to terms with what the X1 actually is!! Is it a console or a cable box?!? Hmm? Now I'm even confused!

If it's a cable box, well, then if the PS4 is the "most powerful of it's kind" then the X1 isn't exactly it's kind!


They didn't even market it as a cable box. They said it was designed to make switching through your entertaiment easier.



Around the Network

Just to be clear, there is no way the APU cost 3B to make. The NRE was most likely below 50-100M. They are saying that it was a design win that was worth 3B in revenue for AMD.

28nm ASICs typically carry an NRE of 10M+ minimum



So amd is getting rich from ms and sony



VITA 32 GIG CARD.250 GIG SLIM & 160 GIG PHAT PS3

Wow that's expensive! MS must be confident the Xbox One will sell loads. I wonder if they are overconfident?



    

NNID: FrequentFlyer54

tres said:
amd probably gave microsoft shit apu lol.. it was funny considering how they were talking up the ps4 chip. microsoft wouldve did better going the arrogant nvidia route and one upping sony with dx 12.

I was hoping they would go with DirectX 12 too.  They have stated a number of times, they only want to go with a 'mature' version of a system.  Look at how much they can get out of DirectX 9C on the Xbox 360 - a computer from 2005 just couldn't keep up with what they can do today.

Also, the recent underwhelms of DirectX 10 and Window Vista showed them real world experience is essential.  The much loved Windows 7 is actually only Vist .1.  Thus the more conservative and tested rout of DirectX 11.1.

DirectX 11 is really impressive.  It has a whole bunch of saleable detail that hasn’t been seen outside of pre-rendered cut scenes, from looking far away, to zooming into a tiny detail.  Plus, X1 OS is running in 64bit only.  I think it is closer to Window 9 in some ways.  Sort of Window 8.1-2. (They have announce Windows 9 will be 64bit only; with no support for older hardware.)

DirectX 11 it being well used and liked by developers. It runs well, and the extra “.1” will give all game an easy 3D mode.  Now, even if you don't like or have a 3D TV, this is still a good thing with the new Occulus Riff or Fortazela(speculated) VR Glasses coming out.

I assume that the hardware isn’t available yet for what they want to do with DirectX 12 – which they have said, will only come with a new OS – probably Windows 9.  Which is not due for a least a few more years.  In the meantime they will be tweaking DirectX 11.1 (hopefully for the better.)

Here are a couple of my favorite DX 11 demos:

Glass Chess:  http://www.youtube.com/watch?v=zqe3iUaHX8k

Sneeze The Day: http://www.youtube.com/watch?v=4PjrRSGG-c4

 



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!

Wow 3 billion. Couldn't they just grabbed a good gpu and cpu (like you would in a pc shop), stick it together and call it a day? That is a lot of money if you ask me. Then again i have no idea how to make a good gaming pc :(