Intel’s failure to secure a contract to manufacture chips for Sony’s upcoming PlayStation 6 in 2022 has hurt its efforts to expand its contract manufacturing business. Sony, which relies on contractors for its custom processors, chose not to partner with Intel due to disagreements over pricing and profit margins. This missed opportunity could have brought Intel around $30 billion, as Sony consoles typically sell over 100 million units over their lifespan.
This loss comes as Intel struggles to compete with Nvidia and AMD, which dominate the AI chip market, and after a poor financial quarter. Intel is cutting 15% of its workforce and scaling back factory expansion plans, key to its foundry strategy. Despite these challenges, Intel remains optimistic about its customer pipeline but declined to comment on specific deals. Sony and other involved parties have also not commented on the situation.
Source : CGTN