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Thread: RUMOR: Microsoft Interested in Buying AMD

  1. #1

    Default RUMOR: Microsoft Interested in Buying AMD


    It appears that the computing industry, as well as the gaming industry, may be headed for a tectonic shift of balance- a new rumor states that Microsoft is looking into purchasing CPU and GPU maker AMD a bid to revive its chip design operations. Apparently, Microsoft initiated the talks a few months ago, though it is unclear exactly what has come about from these.
    Buying AMD would have multiple strategic advantages for Microsoft- on a larger, macro company wide basis, Microsoft would be able to custom tailor and design chips for its hardware, potentially integrating the software and hardware on its Lumia and Surface product lines far better; this may also provide Microsoft with a foot in the door as far as the future of the computing industry is concerned.

    Moreover, Microsoft would also benefit greatly on the gaming front- analysts estimate that Microsoft pays roughly $100 for every Xbox One sold to AMD in royalties (the Xbox One utilizes an AMD SoC). Given the lifetime sales of Xbox One at around 12.6 million units, this 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, which would come as a welcome break to the beleaguered gaming division that has traditionally struggled to stay in the black.

    Presuming Microsoft wants to continue licensing out AMD chips, and not keep them completely in house (something that is a common practice in the industry, and also something that Microsoft is wont to do, given how it handled its acquisition of Minecraft last year), it would earn money from each PS4 or Wii U system that is sold in licensing, since both those systems utilize AMD SoCs as well; moreover, Microsoft would also have a direct stake in PC gaming, given AMD’s prominent position in the PC CPU and GPU market.

    It sounds like it would be a very smart move on Microsoft’s part to acquire AMD, then, but there are other things that must be considered- for instance, the action may be viewed as anti competitive by Anti Trust commissions, and Microsoft already has enough trouble on that front. Moreover, Microsoft shares a very close relationship with chip maker Intel, and an acquisition of chief rival AMD is undoubtedly going to alienate them.

    But still, it seems as though the pros might outweigh the cons. Whether or not the talks go through, the next few months promise to be very interesting.


    Source: GamingBolt

  2. #2

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    That would be very interesting indeed. AMD is falling so far behind and I can't help but feel that with Microsoft at the helm it would help AMD a lot. Plus with XBox Ones and PS4s both using AMD graphics chips... well it will lead to some interesting times.

  3. #3
    Bargain Hunter mottamort's Avatar
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    First ATI, now AMD...

  4. #4

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    Quote Originally Posted by mottamort View Post
    First ATI, now AMD...
    Microsoft Radeon, HERE WE COME!
    --~<0>~-- {type}DEV --~<0>~--

  5. #5

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    if i was intel i would push for this simple reason is intel needs AMD around and microsoft can give amd the cash it needs to bring proper competition to the cpu market. At first might seem a bit anti competitive but I am sure with correct condition this can bring the needed competition in cpu market.

  6. #6

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    I don't see any way how this would be good. When was the last time Microsoft did something beneficial for gaming?

  7. #7

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    Quote Originally Posted by Graal View Post
    I don't see any way how this would be good. When was the last time Microsoft did something beneficial for gaming?
    Well for one there's the XBox One which serves as competition to the PS4, thus preventing a monopoly in the gaming console market.

    Then there's DirectX 12.

    There's the HoloLens which shows that Microsoft is experimenting with new technologies.

    There's Visual Studio for which Microsoft has released a Community edition which is free to use and is now the default IDE for Unity, Unreal Engine 4 and Cocos2D.

    And so forth.

  8. #8

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    Free copy of Minecraft with every Radeon card.
    One day, I'll grow up and become responsible.
    Probably not today.

  9. #9

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    This is very interesting news. I think this will be very good for all involved.

  10. #10

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    Fixed that for you

    “You will know the good from the bad when you are calm, at peace. Passive. A Jedi uses the Force for knowledge and defense, never for attack.”
    ~ Jedi Master Yoda ~


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