The real reasons Microsoft and Sony chose AMD for consoles [F]

[krumme]

Business' walk away from deals everyday for a myriad of reasons.

Like what?

 

[Piroko]

Are you saying Intel should jump into everything, as long as there is "any" margins?

They do produce low margin stuff like flash chips and USB controllers. That is a sensible way to mitigate risks. Those console chips wouldn't have been on the newest process node either for most of their life (judging by history).
And it is a multi billion $ contract that went right to their competitor. That shouldn't be something that you take lightly.

Business' walk away from deals everyday for a myriad of reasons.

I was just pointing out that some posters ruled out most sensible reasons by default and essentially only left the 'emotional' ones.

 

[Phynaz]

Like what?

Do you really think that every business takes every opportunity offered them?

Price, culture, staffing, ROI, opportunity cost are just a few reasons why a business would. When I was in sales I walked away from deals that just weren't worth the effort.

Call Newegg and tell them you want an A10-6800 for $89. I'll bet you they will walk away from that deal.

 

[SiliconWars]

Do you really think that every business takes every opportunity offered them?

Price, culture, staffing, ROI, opportunity cost are just a few reasons why a business would. When I was in sales I walked away from deals that just weren't worth the effort.

Call Newegg and tell them you want an A10-6800 for $89. I'll bet you they will walk away from that deal.

You worked in sales and don't even know what a deal is?

deal

/dēl/

Noun

• An agreement entered into by two or more parties for their mutual benefit, esp. in a business or political context.

Calling up somebody and telling them what you want and for how much isn't a "deal" under any normal meaning of the word.

 

[krumme]

Are you saying Intel should jump into everything, as long as there is "any" margins?

While Intel could, you would have to move resources from other more profitable areas. You dont just hire a 1000 Ph.Ds and expect 100% output after a week in all the chain.

What you do is to look at your resources and see where they make the most money. You would not take an extra job for a dollar an hour would you? I mean...any money right? Profit?

Well that would be loosing money and not profit imo.

 

[Piroko]

Call Newegg and tell them you want an A10-6800 for $89. I'll bet you they will walk away from that deal.

Call Newegg and tell them you want a quarter of a million A10-6800s evenly spread over the next five years. That would resemble the magnitude better.

 

[krumme]

How many ps4 is expected to be sold?

 

[ShintaiDK]

They do produce low margin stuff like flash chips and USB controllers. That is a sensible way to mitigate risks. Those console chips wouldn't have been on the newest process node either for most of their life (judging by history).
And it is a multi billion $ contract that went right to their competitor. That shouldn't be something that you take lightly.
I was just pointing out that some posters ruled out most sensible reasons by default and essentially only left the 'emotional' ones.

So I assume you will start work for me now for 1$ an hour? I will keep you employed for years!

Or are you looking at your resources and deciding it would be better not to take that job?

 

[SiliconWars]

How many ps4 is expected to be sold?

There's no reason to believe it'll sell any less than the PS3, so around 100 million at a minimum over it's lifetime (currently sitting at 80 million sales).

Microsoft believes 1 billion sales of next-gen consoles is a possibility and they would be assuming at least 1/3rd of that. Realistically I'd say 200 million each for the PS4 and Xbox One is more likely as the high point.

 

[Phynaz]

You worked in sales and don't even know what a deal is?

deal

/dēl/

Noun

• An agreement entered into by two or more parties for their mutual benefit, esp. in a business or political context.

Calling up somebody and telling them what you want and for how much isn't a "deal" under any normal meaning of the word.

It's an offer to make a deal, which Newegg would "Walk away from". The phrase is called an idiom. I'll leave you to look up its meaning.

 

[ShintaiDK]

There's no reason to believe it'll sell any less than the PS3, so around 100 million at a minimum over it's lifetime (currently sitting at 80 million sales).

Microsoft believes 1 billion sales of next-gen consoles is a possibility and they would be assuming at least 1/3rd of that. Realistically I'd say 200 million for each the PS4 and Xbox One is more likely as the high point.

Why not? Both the PS1(102m) and PS2(155m) outsold the PS3(78m).

200 million of each console? The PS3 sold 78 million over 8 years and the Xbox360 77 million over 9 years.

I doubt any of the 2 gonna go above 75 million.

 

[krumme]

So I assume you will start work for me now for 1$ an hour? I will keep you employed for years!

Or are you looking at your resources and deciding it would be better not to take that job?

Can you be more specific?

Besides i dont think he wants you as his employer even if there is still room in the basement

 

[SiliconWars]

It's an offer to make a deal, which Newegg would "Walk away from". The phrase is called an idiom. I'll leave you to look up its meaning.

I find it curious that you use an idiom when asked for an example.

 

[SiliconWars]

Why not? Both the PS1(102m) and PS2(155m) outsold the PS3(78m).

200 million of each console? The PS3 sold 78 million over 8 years and the Xbox360 77 million over 9 years.

I doubt any of the 2 gonna go above 75 million.

And how many Wii's were sold, and how many Wii U's do you expect to be sold?

 

[ShintaiDK]

Can you be more specific?

Besides i dont think he wants you as his employer even if there is still room in the basement

Specific about what? And I dont get the rest of your post, could you elaborate?

 

[ShintaiDK]

And how many Wii's were sold, and how many Wii U's do you expect to be sold?

100 million Wii sales. Wii U? More than Xbox One and PS4, but less than the Wii.

 

[SiliconWars]

Wii U? More than Xbox One and PS4, but less than the Wii.

. Brb while I sig this.

 

[krumme]

Okey i will call newegg and ask for 75M A10 6800 for 89 usd a pcx. Then they will stop all other incomming calls because its in another roi bracket - or what?

 

[ShintaiDK]

. Brb while I sig this.

Coming from the person saying 200 million of each console?

 

[SiliconWars]

Coming from the person saying 200 million of each console?

I said 200 million as the likely maximum for each.

I'll let you bail out now by gently reminding you that consoles are currently banned in China.

 

[Exophase]

100 million Wii sales. Wii U? More than Xbox One and PS4, but less than the Wii.

Wow, that is quite the minority position you're taking.

 

[SiliconWars]

Wow, that is quite the minority position you're taking.

Yeah and the really annoying thing for him is, AMD still gets paid regardless.

 

[Exophase]

Yeah and the really annoying thing for him is, AMD still gets paid regardless.

They'd get paid more if PS4 and XBox One take a bigger chunk of the console market than Wii U, though

 

[SiliconWars]

Yup, nobody was suprised by Shintai's extreme-minority position here I think.

 

[Piroko]

So I assume you will start work for me now for 1$ an hour? I will keep you employed for years!

Or are you looking at your resources and deciding it would be better not to take that job?

Wrong example imho. It'd be more like if you were giving me the option to expand my business of selling self-made cookies, but you only want to buy loads of cheaper ones without chocolate chips. The rest of my business model consists of selling varying amounts of premium cookies for premium prices (meaning, fluctuating income) and filling up my spare time with selling very cheap ingredients in town (e.g. flash).
So, I already know how to make cookies, I have possibly enough time and ovens to do so, I only need to create a good enough dough (which is an investment I'd have to do, yes) and calculate the costs to give you my price.
But the general consensus in this thread seemed to be that I didn't even bother to reply to you because I don't want to bake cheap cookies (but I'm fine selling cheap ingreadients?).