Xbox One deal worth more than $3 billion to AMD, claims former VP

Xbox One deal worth more than $3 billion to AMD, claims former VP

Summary: AMD secured a deal to provide Microsoft with the silicon to power its new Xbox One console, and a former AMD VP claims that the deal is worth in excess of $3 billion.

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Whether you end up buying a Sony PS4, a Nintendo Wii U, or a Microsoft Xbox One, they all represent money in the bank for AMD since all three consoles are powered by AMD-branded silicon. And now, thanks to a comment made by a former AMD employee, we know just how much securing the new Xbox was worth to AMD.

Bob Feldstein, a former VP at AMD, and currently VP of technology licensing at Nvidia, posted on his LinkedIn page that the AMD/Microsoft deal was worth in excess of $3 billion.

(Source: Microsoft)

"My involvement was focused on business management and supply agreement negotiations," his entry reads.

"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."

The APU in the Xbox One is based on the Jaguar architecture, which is a follow-on to the Bobcat architecture used to build the Ontario, Zacate and Hondo APUs. The CPU is likely to be clocked somewhere in the region of 1.5 to 2.0GHz, while the graphics core should be good to around 1GHz.

The Xbox One is powered not by one but two operating systems running on a custom version of Microsoft's Hyper-V hypervisor. There's the Xbox OS for gaming, and a Windows kernel for apps. The multiple cores gives the new console enough power to handle the multiple operating systems, and the hardware can switch between the two operating systems and devote APU cores as required.

This is an interesting approach, and gives the Xbox One unprecedented flexibility in terms of what it can do.

AMD's stock has jumped nearly 2.5 percent as it continues to reap the benefits from pivotal place in each of the next generation of video game consoles.

Topics: Microsoft, Processors

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25 comments
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  • another slap in the face of Intel

    with the weakening of the wintel monopoly. I think Intel is really going to push extra hard now in supporting non windows platforms.
    drwong
  • Multi-user

    I'd like to see Microsoft turn the XBox into an application server, a multi-user Windows VM host that users connect to via a thin-client installed on a keyboard equipped/hybrid tablet computer. I use a windows 7 WM at work and have grown to love the idea. Moreover, Microsoft could allow remote access via your XBoX Live account.
    dsf3g
    • full win 8 RDP client would be great

      as an app
      everss02
      • Exactly!

        Exactly! Forget having a PC in the office and another in the den. Instead you have a central VM host that you access from anywhere in the house or anywhere in the world from your iOS, Android or Windows tablet.
        dsf3g
        • You wouldn't like game performance

          Uhh, yeah a HTPC can run H-V or remote desktop. But game performace slightly "suffers" using a remote desktop connection. And U don't need it hooked to a 60" HDTV to do remote desktop....
          mbradley9645
          • Yeah

            Yeah... but it's an Xbox! You use the Windows WM for productivity and switch to the Xbox for games. That's the beauty of it.
            dsf3g
      • That's why you build your own HTPC

        Which you can put together with 2x the power for the same price as an xbox. Xbox is nothing but a PC in a small case with dedicated games, almost all of them are available on the PC too. A custom HTPC can be 3D too (Nvidia 3 D) unlike an XBox. Think of playing COD in 3D on your HDTV and you can choose your controller, bluetooth stereo headset, etc., stuff XBox hasn't touched, let alone a Blu-Ray burner or external 3TB USB 3.0 drive....
        mbradley9645
      • That's why you build your own HTPC

        Which you can put together with 2x the power for the same price as an xbox. Xbox is nothing but a PC in a small case with dedicated games, almost all of them are available on the PC too. A custom HTPC can be 3D too (Nvidia 3 D) unlike an XBox. Think of playing COD in 3D on your HDTV and you can choose your controller, bluetooth stereo headset, etc., stuff XBox hasn't touched, let alone a Blu-Ray burner or external 3TB USB 3.0 drive....
        mbradley9645
  • AMD is doing it right.

    I have always loved AMD and their products, I am waiting to see what they do for the PC side with this hardware that they have created for the XBox One. They just need to squeeze a little more performance out of their chips and keep with the reasonable prices and they may just beat Intel into the ground in the next 5 years or so.
    ragnarokxg
    • AMD has never done it right

      AMD will need to squeeze a hole lot out of their CPU's to catch up to Intel, a lot, no really an immense amount. The only reason AMD was used was to keep price down on the new Xbox. AMD has a long history of problems and overheating with their CPU's. I think you need to go do a google search and tell us what you see, the fact is AMD is at least a year behind Intel, maybe even two.
      Sean Buckman
      • Actually AMD has always had a leg up on Intel

        AMD was the first with a 64 bit architecture. The first with an on chip APU. I have always used AMD and have never had a problem with overheating. Yeah they are behind when it comes to performance, but that isn't a problem to me because it keeps their costs low. Now we are seeing them add more cores to their processors and trying to up their processing power which is awesome. Maybe you should do a Google search and see what AMD has done and how reliable they are compared to Intel. Intel has had a pretty good monopoly for on processors but not even their on board graphics chip has been able to compare to AMD. And that is in part to AMD acquiring ATI and using their knowledge to advance their CPU + APU.

        Regardless of opinions I will stay with what I know to be best for me, and can't wait to see what they do within the next few years.
        ragnarokxg
        • AMD Overheating

          The dinosaur is referring to the overheating problems with first generation 90 nm AMD64's like X64, ancient history.........which is unfair.......
          mbradley9645
          • overheating CPUs

            People forgot Pentium CPUs?
            danbi
      • Uhh, this is a GAME system

        Intel CPU's may be stronger, but ever since AMD and ATI merged, Intel hasn't produced an integrated GPU/CPU that can touch AMD. If you don't believe me you should start studying Anandtech or some other technical websites. Maybe Haswell will do it, but MS needed it NOW, not two years from now. It's already been almost 8 years since XBox 360. It was a $$$ decision. Sure, MS could've stuffed an i7 and a dedicated NVidia 7900 or whatever the latest is, but no one's going to pay $1000 for an xbox....
        mbradley9645
      • AMD IS COOL & QUIET

        @ Sean Buckman How you say AMD have problems before ? no sense ?

        AMD is always better than Intel .... AMD have better features that intel dosent support and thats why Intel always copy AMD ... Intel is far behind than AMD ... AMD APU'S have better and reliable solutions heavy GPU + CPU performance why intel users always behind coz intel always copy what ever AMD brought yes thats the sick thing intel is doing shame on intel looser ................................

        AMD IS SAME AS PEOPLE HAVE MULTIPLE CHOICE OF CARS LIKE FERRARI , AUDI, TOYOTA AND SO ON ... SO YOU NEVER EVER CAN SAID AUDI IS BETTER THAN FERRARI AMD IS THE BEST THATS WHY WE ARE SEEING PS4 AND XBOX ONE GOT MORE ATTRACTIVE AND REALISTIC GAMING .... ONLY WITH AMD
        TariqA6
      • Re: I think you need to go do a google search

        Yeah, we need to believe everything that someone whore in Internet.
        danbi
  • $3B to AMD minus some

    I don't plan to buy the new Xbox. The Xbox 360 and 250 games that I have are doing just fine for me.
    Yaarov Skimaan
    • lol

      Lol, I've got the original Xbox plus a bunch of games that I bought on closeout and hardly ever pay. But I could see myself upgrading to the Xbox One. I really like the direction Microsoft is going with it.
      dsf3g
  • Metro?

    I hope they don't put Win8/Metro on it, but I bet they will.
    edelbrp
    • @edelbrp

      What apps do you think Adrian is referencing in his article?
      statuskwo5