Reuters released an extensive report on the failed deal between Sony and Intel, where Intel aimed to supply custom-made chips for the future PlayStation 6 consoles. However, AMD ultimately secured the contract.

According to three sources from the agency, Intel was unable to secure the contract with Sony in 2022, losing to AMD in a competitive tender.The deal could have brought Intel $30 billion in revenue over its duration.

However, Intel and Sony could not agree on the revenue Intel would receive for each chip sold to Sony. After months of negotiations, Sony chose AMD. Choosing AMD was practically inevitable since the PS5 already uses AMD chips. Switching to Intel could have caused significant backward compatibility issues for the PS6, which Sony was not willing to risk.

The missed contract, along with serious concessions in AI to both AMD and Nvidia, led to a 15% drop in Intel’s financial performance in August this year. As a result, Intel had to lay off over 15,000 employees. The company is now working hard to secure a major client to improve its situation.

Intel responded by stating that it disagrees with Reuters' characterization and is satisfied with its current partnerships. Sony and AMD did not comment on the article.

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