AMD Almost Went Bankrupt…but were saved by Sony and Microsoft?
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Promos
Check out DeleteMe here: joindeleteme.com AMD was in big trouble years ago - did Sony and Microsoft's decision to have AMD design the chips for the PlayStation 4 and Xbox One save Team Red? Leave a reply with your requests for future episodes. ► GET MERCH: lttstore.com ► GET A VPN: piavpn.com ► GET EXCLUSIVE CONTENT ON FLOATPLANE: lmg.gg ► SPONSORS, AFFILIATES, AND PARTNERS: lmg.gg FOLLOW US ELSEWHERE --------------------------------------------------- Twitter: twitter.com Facebook: @LinusTech Instagram: @linustech TikTok: @linustech Twitch: twitch.tv
AMD Almost Went Bankrupt but were saved by Sony and Microsoft provides a detailed look at the crises that almost toppled AMD in the late 2000s. The video explains how the company faced a financial downturn during the aftermath of the global financial crisis, with layoffs, pay cuts, and even the sale of its mobile division. It then explains the turning point: Sony and Microsoft choosing AMD to power the CPUs and GPUs in the PlayStation 4 and Xbox One. The narrative contrasts AMD's previous generations with Intel’s dominance and the challenges of non x86 architectures in the previous console era, highlighting AMD's strengths in integrated graphics after acquiring ATI and its strategy of semi-custom designs for consoles. The host discusses why AMD was a natural fit for the next generation consoles, including the appeal of a single chip solution that combined CPU and GPU on one die, which helped reduce heat and power requirements. The video notes that while the console partnership did not instantly vault AMD to the top of the tech world, it kept the company afloat, contributing to hundreds of millions of console sales and a broader recovery that culminated in AMD's Zen era in 2017. The Zen launch is framed as a major milestone that might not have happened without the console market buying AMD chips in huge volumes, effectively enabling AMD to reestablish its reputation and invest in next-generation architectures. The host also points out that the PS4 and Xbox One era helped push developers toward AMD-based ecosystems, which, in turn, fed the company’s CPU and GPU roadmap and led to renewed competitive momentum for PC enthusiasts and data center customers alike. The video closes with a light wink to PC gaming fans about the underappreciated role of console partnerships in AMD’s revival and invites viewers to share ideas for future episodes.
Topics · technology · business_history · consumer_electronics · semiconductors · gaming_consoles · cpu_gpu_architecture
Questions answered
- How did the PlayStation 4 and Xbox One contribute to AMD's survival in the late 2000s and early 2010s?
- By choosing AMD to design the CPUs and GPUs for their consoles, Sony and Microsoft provided AMD with a high-volume, stable demand for semi-custom chips, enabling AMD to sustain operations during financial strain and invest in future architectures.
- What architectural advantages did AMD have that made them attractive for next-gen consoles?
- AMD offered strong integrated graphics capabilities through its Radeon line and experience with semi-custom designs, allowing a CPU and GPU on a single die which reduced heat and power needs and made development more approachable for console manufacturers.