This is why Sony chose AMD for the PlayStation 6 chipset.

In 2022, AMD and Intel negotiated with Sony to develop the PlayStation 6's circuitry, according to sources at the news agency. ReutersSeveral bids were submitted, including an early bid from Broadcom, but in the end the choice was between processor giants Intel and AMD.

Ultimately, the decision was made by AMD, which also developed the PS5’s circuitry, for two reasons. The main one was that Sony and Intel couldn’t agree on how much of the profit the circuitry giant would get from the deal, while AMD offered more competitive pricing.

The second reason is that Sony was keen to ensure that the PS6 would be backwards compatible. Giving AMD the task would simplify the process since the company already produced the circuitry for the previous generation of consoles. Choosing Intel would mean a bigger investment to ensure backwards compatibility.

The win would be a real coup for Intel CEO Pat Gelsinger, who has been working to turn around the company’s setbacks, the sources said. Sony has been a reliable customer for the company’s foundry business, which has struggled to attract large customers capable of generating long-term revenue.

We disagree with this characterization but will not comment on any ongoing or potential customer conversations. We have a very strong customer base across both our product and foundry operations and are fully focused on innovating to meet their needs. – Intel spokesperson

Reuters contacted AMD and Broadcom for comment, but both declined to comment.