The Xbox One’s guts cost how much?

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Microsoft’s Xbox One is powered by a custom chip that’s based off existing AMD architecture. It sounds like it’ll be functionally quite similar to the tech powering the PlayStation 4, but has been retooled specifically for the Xbone’s multi-layered operating systems. And it’s apparently cost Microsoft a heck of a lot of money.

According to former AMD employee Bob Feldstein who’s now VP of Technology Licensing at Nvidia, Microsoft will be handing over a tonne of money to his rival chip purveyor.

“AMD provided a custom silicon solution to Microsoft for the Xbox One, a game console and entertainment device.” he said on LinkedIn. “This required the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, multi-year deals. This project is valued at $3+B.”

$3 Billion sounds like a lot of money – and it is – but the deal likely covers R&D, personnel and the requisite parts over the console’s life time. AMD has supplied Nintendo with the silicon that powers the Wii U, and will be delivering the PlayStation 4’s innards as well the Xbox One’s internals – making it quite clear that the “winner” of the next-gen race is most certainly AMD.

Last Updated: May 28, 2013

Geoffrey Tim

Editor. I'm old, grumpy and more than just a little cynical. One day, I found myself in possession of a NES, and a copy of Super Mario Bros 3. It was that game that made me realise that games were more than just toys to idly while away time - they were capable of being masterpieces. I'm here now, looking for more of those masterpieces.

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