Microsoft is interested to buy AMD

Lets hope for DX 12 optimized card from MS, if its true. :) source

June 29th, 2015 at 7:34 pm - Author Anton Shilov

In a bid to revive its chip design operations, Microsoft Corp. may acquire Advanced Micro Devices, according to a source familiar with the matter. The software giant approached AMD several months ago, the source indicated. The result of the talks is unclear.

Microsoft Corp. has been selling game consoles for over ten years now and back in 2006 the firm even formed a division to design chips for its products, primarily game consoles. While this internal group has clearly developed some chips for Microsoft’s hardware, the company used chips designed by Advanced Micro Devices and Nvidia Corp. for its Xbox One consoles and Zune players, respectively. As it appears, Microsoft’s own chip design team cannot really develop competitive solutions for the company’s devices and in order to make its chip operations viable.

The details about negotiations are unclear, just like Microsoft’s exact proposal to AMD. However, since Microsoft has $95.3 billion in cash, whereas AMD’s market capitalization right now is $1.81 billion, the software giant may buy AMD relatively easily. In fact, current value of AMD is three times lower than the company paid for ATI Technologies in 2006.

Analysts estimate that Microsoft pays around $100 for every Xbox One system-on-chip to AMD. Life-to-date sales of Xbox One are around are around 12.6 million units, which means that Microsoft has already paid AMD around $1.26 billion for Xbox One chips. The acquisition of AMD could save it around a billion per year on Xbox One chips alone. It the company develops appropriate chips for smartphones and tablets, Microsoft’s savings could be even higher.

It is necessary to note that Microsoft does not really need AMD. The software giant needs system-on-chips to power its Xbox game consoles, Lumia smartphones, Surface tablets and possibly other hardware devices. It does not really need server processors or high-end graphics cards. However, AMD’s management will unlikely sell a part of AMD to Microsoft since its accelerated processing units (what Microsoft needs) are based on technologies developed for server microprocessors and high-end graphics cards.

The battle for video game console space is very strong. If Microsoft bought AMD, then Sony would be faced with a bad set of choices: put money in Microsoft’s pocket every time it sells a PlayStation, or try to create an entirely new platform by using technologies from Intel, Nvidia, ARM or Imagination Technologies.

Since game consoles is an important business for Microsoft, the company naturally wants to make sure that its technology provider does not go bankrupt or is acquired by a competitor. For example, if Samsung takes over AMD and builds-in its APUs into its TVs, it will automatically become a major player in the market of video games.

AMD and Microsoft did not comment on the news-story.

No sir, Google please save us now! Samsung would be good choice, they can buy AMD and continue to kick Sony out of the business. I would like Samsung, Nintendo, Microsoft, and Steam, would make a great battle.

Doubt it will actually happen. REALLY doubt it.

AMD would benifit hugely from being bought by microsoft or google. They need more money for R&D so they can compete with Nvidia and intel.

Can't happen, the moment they buy it the x86 license from Intel becomes null and void.

Are the posters in here also GAF users because I'm seeing the same type of messages. xD

Won't happen.

Technically this may be a good thing though I can see Microsoft pulling what Nvidia does with the exclusive things that cant work on the competitions cards but much worse.

That's massive if it happens. Hope we won't lose AMD support for Linux if this goes through.

Can't wait to hear all the nitwits who drone on and on about how good competition is to come into this thread and talk about how great this could/would be.

it would not be bad for consumers, AMD totally sucks in the software, no decent drivers, optimizations, shadowplay, also a great lack of evilness (in nvidia style) to make their cards "competitive"

This is not very likely to happen for no other reason that MS would almost instantly find itself in a deep legal mess with intel and nvidia both as neither is going to stand by and let MS be a primary producer to major hardware components that they actively compete with.

maybe they weren't gonna make dx12 cards so this way microsoft could force the change to happen or something

Question:Is AMD better then Nvidia?

Much for muchness, NVidia is on top at the moment but AMD has had there fare share of wins too. It's been swinging back and forth for like +15 Years, back before AMD bought ATi.

Every Playstation that used Ati/AMD graphics card was a big success

Most likely bots of the illuminati :chuckle: just kidding.

How much has Sony paid to AMD for their chipsets?

So if Sony had to pay Microsoft for every PlayStation sold, who would be winning the console war?

AMD is hurting bad and they need a deal like this to survive. Somebody will buy AMD, but will it be Microsoft? Maybe, maybe not. But AMD is only alive because of the deals they have with Microsoft, Sony and Nintendo. And I'm sure the only reason the big 3 have gone with AMD over the competition is because AMD was the lowest bidder. Outside of the console business they are hurting. Intel is running the CPU market and Nvidia has been putting it to them on the GPU side of things.

An Intel/Nvidia console would be pretty sweet now that I think of it. Come on Nintendo, do it!

I wouldn't doubt if words were exchanged, but it's not going to happen. However, it would be funny if Sony ended up putting money into MS's pocket with each Playstation sold lol.

Somebody needs to save them to push Nivida.

Hell no! I don't want Ad-ware/Spyware on my PC!

that's a dumb idea, it'd just force their competitors to Nvidia, and that's the end of that

then again choosing to utilize Nvidia is a double edge sword, they can always do what they did to MS on the Xbox and refuse to lower prices of hardware to strong arm more money and end up ruining the console company's competitiveness on pricing

@mesome713: Kick Sony out of the business? GTFO troll!

@AM-Gamer: I wasnt joking, they kicked them out of Phones, TVs, Tablets, Speakers, and are attacking them on Cameras now. Samsung is going after Sony like they slapped they momma. Plus they make awesome home appliances ;)

Samsung has made it clear they want in the gaming industry. Sony, they coming, why?, i dont know, but theyre coming for you for some reason. Plus Nintendo done kicked them out of Japan, and Microsoft is trying to kick them out of America, soon Sony might not have a home anymore.

We're screwed if google is our savior.

No. It's not just about hardware. The software and drivers are mostly better on Nvidia.

And I gather from what people say, they only consider an AMD product because they get a little more bang for their buck. But I'm of the opinion that you should get something because you want it and are excited about it, unless your objective is to have something on a budget.

I've never been excited about an AMD product personally, yet I am with Intel and Nvidia products. That's where I think AMD has got it wrong. They market their products to the entry level which is fine, but they market their products as 'the cheaper alternative' which I think is a poor stance.

@ladyblue: Dont fear open source, its good for the world.

Hehe! open source is an understatement.

Much as I distrust Microsoft, sadly this is true. The recent Fury X disappointment certainly drives that home.

If you are reading this rumor then it is already too late and it is done. If true.

It make perfect sense.

Plus AMD was in serious trouble right before the new consoles were announced. It seemed the console launches of this gen have spared AMD momentarily.

How's that $95 billion bank roll sound? Like they intend to use it.

AMD might not be the best, but they are quality. Ive rocked AMD for bout 10 years on 2 builds and they lasted, i also never turn off my computers, they run 24/7. Im also very happy with my Asus AMD cards, which of course has a lot to do with Asus. Again, they may not be the best, but they are awesome and provide great competition.

Thats weird as hell, considering they were rumored to be in talks to buy Nvidia as recently as 2013.

They've also had a buy-out pact with Nvidia for more than the last decade, saying that if anyone attempts to aquire Nvidia for more than $3 billion, Microsoft has the first right of refusal.

I don't think Microsoft is willing to invest so much for such a minor component of their business. We have to realise that Xbox and gaming in general is infinitesimally unimportant to Microsoft compared to their business software/service and OS business. In short, Microsoft's shareholders will never allow something this unsound to happen in the foreseeable future.

However, hypothetically speaking if they do acquire AMD for no good reason, it will in the sphere of console wars at least put Playstation into very dire straits. Nvidia is too successful and profitable to be interested in providing console hardware, and AMD will be controlled by Microsoft, leaving Sony having to rely on its own tech or the whims of its chief console competitor. Again, this all sounds great from the perspective of console wars, but the bigger picture is that the entire endevaour is simply not worthwhile.

@GhoX: AMD could make phone and tablet processors in addition to console apu, cpus, gpus. I could see it happening.

@mesome713: LOL What? Sony is still the third most sold tv in the world and they consistently beat Samsung in reviews when it comes high end tv's. Sony also sells more speakers and Samsung buys Sony's image sensors for there smartphones. If there cameras were so great why do there phones have Sony made Cameras? If Samsung got into gaming they would get dropped.

Sony doesn't have a home? In regards to gaming the entire world is there home. The PS4 is dominating everyone.

PS4 is doing so well that even MS want to profit off it.

Who is number 1 though ;)

Not Sony. Samsung is number 1 in almost everything they do, they destroy the competition, and trust me, the competition is fierce, but Samsung dont care, they will knock down the giants like its nothing. Samsung came from nothing and rose to the top. Samsung is the king now, Sony is about finished, they can be easily replaced by a better hardware creator and thats exactly what is happening. Sony needs to make themselves irreplaceable, but i dont see that happening they usually always make poor business decisions.

Samsung is coming, and they want Sony it seems.

And they can still make those things for Microsoft even if they are not owned by Microsoft. There is little to gain for Microsoft except for controlling the competition. It's like in Civilization games. AMD is more useful as an ally than conquered.

Doubt will happen, but if it does I can see PC gamers all over the internet venting. Especially those on PC gamers.

That would be bad for Sony and Nintendo.

@mesome713: Samsung was able to rise to number 1 due to there ability to sell things at massive profits. Them being number 1 doesn't mean they are the best. There high end tv's are nowhere near the best.

Do you have any idea how hard it is to make successful game console? Not to mention the profit margin is extremely small. They have to invest billions for something they have no passion for. Samsung is average shit that sells well for now, but there profit margins have shrunk recently.

@AM-Gamer: Samsung can do it, look at their track record, its amazing, also their quailty is off the charts, my Samsung Tab, Galaxy Phones, and my Samsung Monitor all work perfect. Im always amazed at the quailty and price, they are perfect. Samsung would be perfect to replace Sony, they have already replaced them in about everything else, so why not consoles. Samsung could buy AMD and then boom, knock Sony out the park. Samsung also got that money to spend, they could buy all types of things, could buy some studios, IPs, whatever you can think of, Samsung can do.

Sony has some great games over the years. A true gamer wouldn't want them to leave.

@LJS9502_basic: True, but theyve had some pretty horrible ones also, would be great to have a fresh company like Samsung developing some games, they could buy AMD and Sega and just start creating, would be cool to see what they could do. Im sure they would bring that quality people have grown to love.

No. Of the three current console makers...MS is the one lacking a lot of IPs. And even at that I'm not going to advocate they leave.

@LJS9502_basic: Microsoft is doing good though, they have created some neat stuff, plus they have Windows. We still need Microsoft.

Nintendo interested in buying Nvidia (because they both start with N) ;)