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Xbox One deal worth more than $3 billion for AMD

Former employee's deals bring in big money for AMD

AMD's deal to provide the system-on-a-chip for Microsoft's Xbox One is worth more than $3 billion. That information comes from the LinkedIn profile of Bob Feldstein, former AMD vice president of strategic development and current Nvidia vice president of technology licensing. Feldstein left AMD in July of 2012, after handling the deals that found the company's silicon in the Xbox One, PlayStation 4, and Wii U.

"AMD provided a custom silicon solution to Microsoft for the XBox One, a game console and entertainment device," reads Feldstein's profile.

"My involvement was focused on business management and supply agreement negotiations. This required the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, multi-year deals. This project is valued at [$3 billion]."

In January of this year, AMD accused Feldstein and several other executives of stealing more than 100,000 proprietary documents and electronic files before leaving for Nvidia. AMD also alleged that Feldstein recruited one of the other defendants and possibly other employees for Nvidia.

AMD having chips in all three consoles should help the company, which has been behind rivals Nvidia and Intel. The company reported a net loss of $146 million for the first quarter of 2013, versus the net income reported by each competitor during the same period.

[Image via Wired]

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Latest comments (2)

Paul Jace Merchandiser 3 years ago
Stories like this always remind me just how broke I am in the grand scheme of....chip manufacturing.
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Adam Campbell Producer, Hopster3 years ago
I feel that if it wasn't for these multiple, next-gen console deals, AMD would be in a lot of trouble. The Microsoft deal alone would help ensure their future as a major force in semiconductors, then we can add on huge deals also sealed with Nintendo and Sony.

The missing piece of the puzzle right now is mobile. It will be interesting to see if AMD will eventually make an attempt to push low power versions of the AMD "Jaguar' architecture into tablets and smartphones. ARM powered architectures may be dominant but there is always an opening in the market, one that Intel are trying to take for themselves...
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