Microsoft is interested to buy Advanced Micro Devices

I don't know how reliable the source is nor validity of the story, but interesting never the less.

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.

Source: http://www.kitguru.net/components/an...evices-source/

Hi there

Not sure if that would make any sort of business sense -- AMD is probably going into terminal decline anyway. Will take a while but IMO AMD is essentially living on borrowed time.

Snapdragon stuff for phones etc, and Intel for other devices with a few special graphics GPU's for gamers. I think for non specialized gaming machines things emanating from AMD - especially things like Nvidia stuff probably have caused more aggro than any other hardware component since the first ABACUS was invented.

AMD could probably pay off Greece's instalment to the IMF - although it's leaking cash even quicker than Greece !!! but other than that it's a ZOMBIE corporation -- if you own any stock in it FLOG IT QUICK.

@fracking4oil -- as an old Oil engineer -- Fracking doesn't get OIL -- you get GAS from it (not GASOLINE !!!!). You can of course LIQUIFY GAS for use in motor vehicles etc - LNG and LPG are two common examples but most of the products of fracking outside the USA would be used for ELECTRICITY generation -- much less carbon intensive than a lot of current systems (and FAR safer than any Nuclear option). Probably get slaughtered by the Green Party here but to be independent from regimes like Russia, Saudi etc etc is probably worth going this route until real carbon free renewable CHEAP energy can be generated in volume and with ability to STORE it.

Companies like TESLA look good as they are now making Batteries that can STORE the solar energy generated -- problem with Solar has been that you haven't been able to STORE the electricity and use it when the sun isn't available.

...end of lecture !!!!!!!!!

Cheers
jimbo

jimbo45 said:

Not sure if that would make any sort of business sense -- AMD is probably going into terminal decline anyway. Will take a while but IMO AMD is essentially living on borrowed time.

Not only that, It would probably damage their existing excellent relationship with Intel.

I don't see them wanting to do that.

jimbo45 said:

@fracking4oil -- as an old Oil engineer -- Fracking doesn't get OIL -- you get GAS from it (not GASOLINE !!!!). You can of course LIQUIFY GAS for use in motor vehicles etc - LNG and LPG are two common examples but most of the products of fracking outside the USA would be used for ELECTRICITY generation -- much less carbon intensive than a lot of current systems (and FAR safer than any Nuclear option). Probably get slaughtered by the Green Party here but to be independent from regimes like Russia, Saudi etc etc is probably worth going this route until real carbon free renewable CHEAP energy can be generated in volume and with ability to STORE it.

Hey Jimbo,

Don't look into my username too much, it's just a username (kinda has a ring to it). I know little about the technology nor benefits or negatives to it, besides the little that's been in the press. If you prefer you can just call me James. :)

Have a good day!

James

P.S. Sorry for the off topic posts.

labeeman said:

Windows 8 and Windows surface RT did quite a bit of damage also.

Huh? Using a NVidia processor in the Surface RT isn't going to damage their relationship with Intel. I don't see what Windows 8 has to do with anything.

If Microsoft became their competitor, that's a different story.