Xbox One deal with AMD costs over $3 billion

Multi-year deal between Microsoft and AMD revealed to be valued at over $3 billion.

by

[UPDATE]: An NVIDIA representative has confirmed the information was posted by Ben Allen, director of business transformation at AMD. The post has since been removed from Bob Feldstein's LinkedIn profile.

The original story is below.

Ex-AMD employee Bob Feldstein has revealed that a deal struck up between Microsoft and AMD for the Xbox One is worth more than $3 billion.

Posting on his LinkedIn profile, the former AMD vice president of Strategic Development stated that AMD had signed a multi-year deal with Microsoft valued at over $3 billion. The posting also revealed that AMD provided a "custom silicon solution" to Microsoft for the Xbox One.

Feldstein is currently vice president of Technology Licensing at Nvidia.

Microsoft senior vice president of Interactive Entertainment Business Yusuf Mehdi has claimed that next-generation console sales could hit one billion. Microsoft is yet to provide a sales forecast for the Xbox One.

The Xbox One launches later this year. The console boasts a 500GB hard drive, 8GB of RAM, a Blu-ray drive, 64-bit architecture, Wi-Fi, USB 3.0, and is said to be "nearly silent".

To keep up with the latest news on the console, check out GameSpot's Xbox One hub.

Discussion

237 comments
spindie
spindie

Wow now i definately don't feel bad for AMD anymore.. I actually believed them when they say "boo hoo we can't catch up to intel anymore we just canttt wahhh"

Thretosix
Thretosix

So the PS3 does everything, huge selling point.  XBONE does everything, it becomes a piece of crap.  PS4 can play 4k movies, not 4k games.  PC's will be able to play 4k games, already can if a game is coded for the resolution if not you can likely edit the config file to force it.  I will likely end up with both systems, but that is just how I roll, there will be exclusives on both platforms.  People hate on PC talking about cost, then spend $460 for the ability to play 'their favorite game'.  The pissing contests on forums I think are really entertaining to see people fight about what is better.  Even a $2000-3000 PC is crap if the software companies pump out crappy games.  There will be winners on all platforms.  One thing people need to be doing is talking about what everyone here does have in common.  Their love for games.  Not hate for games because they are on other platforms.  I'm sure both consoles will do very well.

dabomb790
dabomb790

Can anyone please explain to me why the multi-year Xbox has with chip architecture AMD is worth $3 billion? What is AMD providing or supplying to Microsoft over the course of several years that has their deal worth to be $3 billion!!!???

Kryptonbornson
Kryptonbornson

Microsoft hasn't tried to raise the standard system requirements of a PC since Vista. I'm actually hoping APUs become standard, but not to the exclusion of discrete gpus/apus. Not only can the standard OS use more graphical effects, but the low-end of games can be higher than something like WoW, Diablo 3, or browser games. You should be able to assume every PC can run a console quality game. Back in '97, I remember buying a PC game and having to download a software rendering patch to play it as it had native accelerated 3D. Hardware and software need to match for a better experience. That's why I prefer OS X to Windows. Too bad Macs are just too expensive.

nurnberg
nurnberg

The legendary failure rate of Microsoft consoles will require the production of a lot of chips.

mjswooosh
mjswooosh

I can't wait to do some really advanced things on the XBone, like watch cable TV...that'd be so COOL because cable TV is so new and cutting edge. Even though its 2013 I really love to watch commercials. Who needs streaming services?

mjswooosh
mjswooosh

Good news for AMD. I'm thinking this thing is going to tank, however, unless MS reverses course on all the over the top DRM BS.

leandrro
leandrro

its like 120 dollars for each of 25M consoles in 3 years, its a lot of money

2bitSmOkEy
2bitSmOkEy

That is one hell of an expensive disaster.

Phelaidar
Phelaidar

My XboxOne will be very silent... It will be inside a box in some store, since I'm not buying it.

dalua360
dalua360

I was forced to migrate to PS3 when my first Xbox 360 got 3RL... I was abroad, and I thought it was because of the weather ( Iraq ), but after seeing so many cases I decided to get a PS3 instead. I just hope that M$ don't screw up with this one because I want to have options, at least 2 options this year ! PC is out of the question for me because the only game I'll have patience to keep updating and stuff, will be ARMA 3.

Mr_BillGates
Mr_BillGates

$3 billion worth of hardwares that'll be obliterated by upcoming Intel Atoms. LMAO. AMD is irrelevant.

theKSMM
theKSMM

Good news for AMD.  I hope they use that money to get their performance offerings back on par with Intel's best.  Or maybe make a dent in mobile.  I suspect that they can only play the value game for so long.

Kinda messed up that the now-nVidia employee would break the news on AMD's financials though...

jameson425
jameson425

Sony fanboys kiss my ass your a bunch of babies, Sony hasn't confirmed anything directly and all I see is ignorant rants about the Xbox when The PS4 may have the same exact features whether good or bad. All we have seen is an unveiling of what is to come and E3 will show us the real consoles in 2 weeks until then stop being haters because I just want to game I could give a fuck what system its on...

GSGuy321
GSGuy321

They'll make their money back in no time.

Said no one ever.

Riddick123
Riddick123

"is said to be "nearly silent".  Well of course, it can't hear you if it is loud.

plm3d_basic
plm3d_basic

Hopefully AMD will use those profits to invest in good R&D and hire good engineers to make a good alternative to sandy bridge/ivy bridge.  Their gpu side which is ATI is competent enough to compete against Nvidia but their cpu just doesn't hold a candle to Intel.  Competition is good for consumers.

sethfrost
sethfrost

God knows, AMD needs the money? Good for them, if they can make a profit. Intel needs a competitor, who can level with them again one day.

Psycold
Psycold

Hopefully this new money improved things for AMD/ATI so they can continue to produce cards at a great price but improve upon their driver software. 

ERRMAHGERD
ERRMAHGERD

You guys are ranting about this 24/7. Just wait for the release date, and you'll all be swarming at the nearest GAME store.

Hadif151
Hadif151

@PSYCHOV3N0M Dude fucking read they said the Xbox 360 is whisper quiet when you Shut it down not when playing game

TurboGuru
TurboGuru

@PSYCHOV3N0M lol was the 360 really promoted as being whisper quiet? If so that is the biggest lie ever.

nisgos
nisgos

Swiftshader , ohh i remember those days when i had no gpu

AyatollaofRnR
AyatollaofRnR

@jameson425 You have summarised the situation well. Xbox One won't inhibit me from enjoying games the way I did on 360. I buy my games new and I keep them. 

The rest of y'all can quit gaming if you prefer.

HowlPendragon
HowlPendragon

@jameson425 Maybe its because MS has confirmed everyone's worst fears about their Xbox?

Yes its true, Sony may implement the same restrictions but are you saying people should bitch just as much just because we don't know as much about it?

Go suck that Microdick elsewhere.

Hurvl
Hurvl

@Riddick123 Though it would be fun if the Kinect got all "Lalalala, I can't hear you! My system is so loud that I can't hear you!"

blackothh
blackothh

@Psycold word on the street is that AMD is not doing well, and Nvidia walked away from the consoles because they would have not made a profit making the chips because sony and microsoft wanted them so cheap.

I lost interest in AMD since they acquired ATI

Danny_KickAzz
Danny_KickAzz

@ERRMAHGERD I will NEVER EVER go to another console launch EVER!!! those things (along with black Friday) can make a simple person into freaking animals!  When the Xone is released its gonna be weeks if not months till I ever go to a Bestbuy.

leviathanwing
leviathanwing

@ERRMAHGERD i for one have more self respect and composure than that.  i mean all the nerds youd have to stomp out for one on a midnight launch are not worth it.  and in this scenario well... that would be like rushing out to get raid during black friday to spray yourself in the eyes.

jameson425
jameson425

@HowlPendragon I'm sorry have you seen E3 already? You don't know a damn thing about either system, maybe a little more than Sony but I see most Xbox people in here saying how shitty it is to each other, take a look around Gamespot you will find 4 times as many Sony trolls as Xbox. I'm saying I'm seeing tons of Sony people saying sucks to be you when technically the new system has yet to be shown, your bitching about a Playstation on an Xbox Blog so yeah until you have the facts and you don't go play in traffic you jerk... 

jd7904
jd7904

@HowlPendragon  You go ahead and sit there, and be queit and take what your master has said you're aloud to have. I for one will not purchase anything from any company that takes away what has made console gaming my preference for 10 years plus whether it be sony or microsoft .

mjswooosh
mjswooosh

@blackothh There is probably some truth to this. Still, a design win is a design win. And when you're the underdog you take what you can get. The market needs AMD. Competition is good. The last thing we want is an absolute monopoly in CPUs like we already have with Microsoft OS.

liandrikonflict
liandrikonflict

@Titanman2013 Golly...free and sharing information is wrong?

jameson425
jameson425

@mjswooosh Yeah because Sony didn't hold a press conference in March for the PS4 who are you kidding? Talk all the shit you want its bad for gamers not just for the next-gen consoles, I could give a fuck what system does what. I just want to game and neither system is "More or less a through and through gaming machine" the PS4 has a fucking Share button for Facebook and Twitter, Microsoft has a voyeur camera for the creeps, and neither machine has given us what we want as gamers so say what you want about both consoles I don't care I'm leaning more towards a gaming PC atleast they're I won't have always on cameras and Share buttons for Social Media as a required add-on. It seems like console gaming is dead other than the Wii-U, say what you want I bought my first NES when I was 6 and have a big collection of everything gaming, this new generation od consoles is not what I saw coming and that's a bad thing...

mjswooosh
mjswooosh

@HowlPendragon  Its like these tools dont understand that an interview with a MS vice president is about as FACTUAL as it gets. 

All of the silence we are getting now is pretty much MS trying to decide behind the scenes how much if at all they should back-pedal in the face of the shit-storm their draconian DRM created.

HowlPendragon
HowlPendragon

@jameson425 You're right, I was a fool to take the words coming straight from Microsoft executives and consider them facts. I'll try to be as delusional as you now: "Xbox One isn't that bad! We don't really know what will happen, lets wait and see!"

jd7904
jd7904

@HowlPendragon @jd7904 oops allowed, and obviously the comment wasn't directed at you but clicked on last comment in conversation