Seeing that the graphics in consoles are lower level coded, do you really thing it'll be easy to replace GCN optimizations? Sounds almost as hard as Nvidia using ARM to break into the market for console APUs. X86 and GCN have strong persistence due to their long established presence. Not saying it can't happen, just that the barriers are very high and once AMD does not get greedy, it should remain in use for quite a while.
With a guy like Raja who likely knows the ins and out of GCN, on top Jim Keller and an unlimited budget. Probably. It won't be easy but they can do it. That's irrelevant though.
Since this is a new console, it will use new software and they don't need to use GCN as a base. Consoles run so well with weaker resources because their is direct communication between the games and hardware without the bottlenecks of a high level API to eat resources. As a result, it is in their best interest to start something new where the games are coded specifically for Intel's new hardware. This has a secondary benefit, new hardware introduces fragmentation, so that their advantages don't carry over to the competitors.
Low level API coding is very specialized which also means its the easy to start fresh, particularly with a consoles.
If you were microsoft and Intel offered your 2 billion dollars and were willing to sell the CPU/GPU at cost how attractive do you think this would be? Not only could you turn this 2 billion dollars into a 100 dollar subsidy to price your console below the competition which could be used to win the console war(first 20 million units atleast). Intels cost is truly cost because Intel doesn't have to pay for something AMD/Nvidia have to pay for. That is the margin of TSMC and Samsung. This can be tremendous advantage. TSMC or Samsung a margin are 50%. That is chips on TSMC and samsung come with a margin of 50% and since Intel is selling the chips directly, they can offer lower pricing and still make a profit. Lets look at the cost of the PS4 for example and the APU in it.
https://www.gurufocus.com/term/grossmargin/TSM/Gross%2BMargin/Taiwan+Semiconductor+Manufacturing+Co+Ltd
AMD buys a chip from TSMC/global foundaries for 87 dollars(this was around the cost for AMD) and sells it Sony for 100(this is the price and selling cost of the PS4 APU initially via AMD).
https://www.engadget.com/2013/11/19/ps4-costs-381-to-make-according-to-hardware-teardown/
https://www.geek.com/games/each-ps4-sale-makes-more-profit-for-amd-than-sony-but-how-much-1577855/
TSMC makes a 50% gross margin which means the chip cost them 43.50 to produce. So what does this illustrate? How much lower Intel can price their chips for AMD. That $43.50 is not part of TSMC profit, it's part of Intels. So where AMD had a range of $87-100 to make a profit, Intel can get down to $43.50 which is why they can price so much lower.
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