Home Gaming The Xbox One’s guts cost how much?

The Xbox One’s guts cost how much?

1 min read
41

EEEEEEVIL

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

41 Comments

  1. Tasty peas mixed with porridge

    May 28, 2013 at 10:35

    Positive energy VS negative energy.
    SONY have to try very hard not to win the next gen by an extra 44million sales.

    Reply

    • Tasty peas mixed with porridge

      May 28, 2013 at 10:38

      The 44million are the working XBOX 360s that are on LIVE. The other 33million are bricked according the MICROfail or they just do not give a shit about their off-line gamers.

      Reply

      • TechniKyle

        May 28, 2013 at 10:40

        Is this you OVG? You change you name more times than SnoopDogg and Prince combined…

        Reply

        • Admiral Chief Commander

          May 28, 2013 at 10:40

          ja, its him, has been for some time. you can’t hide the rants he has haha

          Reply

          • TechniKyle

            May 28, 2013 at 10:42

            I’ve seen Tasty Peas for a while, I just wasn’t 100% sure.

        • Tasty peas mixed with porridge

          May 28, 2013 at 10:42

          Officially formally known as OVG :p

          Reply

          • TechniKyle

            May 28, 2013 at 10:42

            Having an identity crisis?

          • Tasty peas mixed with porridge

            May 28, 2013 at 10:45

            I wake up barking mad so I think I might be a dog also.

          • Rince an repeat

            May 28, 2013 at 10:45

            It stands for Online Video Gamer @360Mirror:disqus trolololol!

          • Admiral Chief Commander

            May 28, 2013 at 10:46

            hahahahahahahahahaha, supreme

          • Rince an repeat

            May 28, 2013 at 10:47

            I thought so 😉 Now I’m going to have to watch my back 0-O

          • Admiral Chief Commander

            May 28, 2013 at 10:56

            janee, nou het jy poef

          • Tasty peas mixed with porridge

            May 28, 2013 at 10:53

            🙁

          • Rince an repeat

            May 28, 2013 at 10:55

            Mmm, Oblivious Video Gamer?

          • Tasty peas mixed with porridge

            May 28, 2013 at 10:59

            Orifice

          • Admiral Chief Commander

            May 28, 2013 at 11:00

            do you type your letters on microsoft orifice?

          • Tasty peas mixed with porridge

            May 28, 2013 at 11:02

            No but XBOTS allow MICROHARD access to our orifice’s.

          • Rince an repeat

            May 28, 2013 at 11:01

            Obnoxious Video Gamer? 🙂

          • Rince an repeat

            May 28, 2013 at 13:27

            Hahaha! I call my own brother obnoxious and get a downvote for it, that is SWEET!

          • Andre116

            May 28, 2013 at 13:22

            Soon to be AlwaysOVG.

          • Rince an repeat

            May 28, 2013 at 13:25

            Hahahah! 🙂 Well done.

          • Ultimo_Cleric_N7

            May 28, 2013 at 10:44

            The ranter formally known as OVG

    • Ultimo_Cleric_N7

      May 28, 2013 at 10:44

      HAHAA!!

      Reply

    • Rince an repeat

      May 28, 2013 at 10:46

      Well played SONY, well played indeed!

      Reply

  2. Admiral Chief Commander

    May 28, 2013 at 10:40

    lol @ “custom silicon solution”

    Reply

  3. Admiral Chief Commander

    May 28, 2013 at 10:41

    amd makes me happy

    Reply

  4. Ultimo_Cleric_N7

    May 28, 2013 at 10:48

    Well at least OV-peas mixed with G is still on the money about the Xbone. I was on IGN as saw some people talking about how AWESOME the new Xbox will be and how we need to stop hating.
    I was like…….

    Reply

    • Tasty peas mixed with porridge

      May 28, 2013 at 10:54

      LOL

      Reply

    • FoxOneZA - X-Therminator

      May 28, 2013 at 11:14

      I read the same comments on Kotaku. Reader’s are tired of letting gaming sites troll them with rumors based on rumors based on rumors.

      Reply

  5. Anon A Mouse

    May 28, 2013 at 10:53

    What happened to Intel in this chip race thing? Or are they too hipster to tackle consoles?

    Reply

    • Admiral Chief Commander

      May 28, 2013 at 10:56

      they have a chip on the shoulder

      Reply

    • FoxOneZA - X-Therminator

      May 28, 2013 at 11:10

      They are far to l33t to compete on this low level that is consoles 😛

      Seriously though, Intel doesn’t have a hardcore mobile APU like what AMD have. I was reading an article about the AMD APU’s and even an Intel i5 CPU will stomp all over AMD’s Jaguar chip. The AMD Jaguar APU is really designed to power Tablets.

      Reply

      • Lord Chaos

        May 28, 2013 at 11:14

        i get told constantly that intel shoves money into research and saving the earth, yep all i can find on them are desktop cpu’s, nothing for the mobile environment.

        Reply

        • FoxOneZA - X-Therminator

          May 28, 2013 at 11:24

          There’s a whole new push by Intel to get into the mobile environment that’s already seen AMD have a hard time to get into. There’s also news that Intel could be dropped for the next-gen of Macs.

          Reply

      • Jonah Cash

        May 28, 2013 at 11:24

        How many down votes do you get in a week? A plus minus estimation will do……

        Reply

        • FoxOneZA - X-Therminator

          May 28, 2013 at 11:25

          I don’t count. A vote is a vote whether up or down 😉

          Reply

    • Weanerdog

      May 28, 2013 at 14:17

      According to intel they were not willing to supply chips at the requested price due to the fact that they could use the production capacity for chips with higher profit margins. Basically they could not beat AMDs Price.

      Reply

  6. FoxOneZA - X-Therminator

    May 28, 2013 at 11:40

    So reading between the lines here, and AMD have lost their top brass to Nvidia and Intel in the past 5 or 6 years and they are running on German bailout money. If AMD runs out of money and closes shop, will both consoles be doomed like the first Xbox was or will M$ still be able to produce their custom CPU? #conspiracy

    Reply

    • Weanerdog

      May 28, 2013 at 14:22

      Intel buyout of intellectual property, then renegotiate price of chips supplied for consoles. And if anyone from intel is reading this I am looking for a job, I’ll run your new merger and acquisitions department.

      Reply

  7. CALeGrange

    May 28, 2013 at 11:45

    yeah, but if you take the $ 3 bil, and lets be pessimistic and say they invest another billion in distribution and marketing…thats still a 2 biillion profit after 15 million units against $400 a pop….now i dont know what the initial figures might be wrt sales, but $3 bill in the greater scheme isn’t alot, me thinks…

    Reply

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