AMD gets $60- $100 royalty from Microsoft, Sony consoles

Whether or not Sony and Microsoft will have hit consoles is a tale for another day and as both companies still to provide clear information about their consoles, but in any case AMD will be earning a stable revenue from both the game consoles that are powered by their custom made 8 core x86 processor with Radeon HD graphic SOC solution. An analyst for Jefferies & Co. pointed out that AMD will be earning $60-$100 per sale of any one of the gaming consoles.

Mark Lipacis of Jefferies & Co. pointed out that the company will earn between $60 and $80, but Hans Mosesmann with Raymond James out that the average selling price of this SoC solution would be between $60- $100.

Back in 2005, Microsoft gave $105 per sale of their triple-core IBM power chip, followed by $140 more for ATI R500 graphic sub-system. Sony paid $89 per sale for the cell processor and $129 for Nvidia RSX graphic subsystem in the PlayStation 3. Therefore looking at the solution that AMD is providing, the average selling point estimation by these analysts could be a lot lesser than what the companies may be paying in reality.

Nevertheless, assuming that the above estimate is close enough to reality, AMD should make good money in many cases and even a lot more if there’s a high demand for both gaming consoles.


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