AMD Was on the Verge of Bankruptcy. One Deal Saved Them
Just a few years ago, AMD was on the verge of bankruptcy. Many experts predicted that the company would go bankrupt by 2022. Today, it is doing better than ever. This was helped by specific cooperation.
A dozen or so years ago, AMD was not in the best of shape. The company was unable to compete with Intel on the processor market. Things were not going so well in the graphics card segment either (the Reds bought ATI in 2006). The results were terrible and according to many experts, AMD was going to go bankrupt by 2020. Why didn’t this happen?
AMD on the verge of bankruptcy
Renato Fragale, a former AMD employee, provides an interesting perspective on the matter. In his opinion, the company was saved by one collaboration. Which one? Specifically, this concerns Sony and PlayStation 4. AMD created an SoC for the console, which sold 117 million worldwide. Such a huge success of the device allowed the Reds to get out of the hole. Today, the company is doing better than ever, and its products are enjoying growing interest (mainly processors).
I managed a 15-person product development team for the Sony PlayStation 4 (PS4), which has sold over 91 million units to date. This is considered one of the most successful developments in AMD’s history, helping AMD avoid bankruptcy.
– wrote Renato Fragale, who held the position of Gaming Client PC Business Lead at AMD, on LinkedIn.
At the same time, the Xbox One also went on sale, which also used AMD components. Microsoft’s console also played its part in saving the company, but not as much as Sony’s. The reason is simple. PS4 sold around 117 million units, and XOne around 58 million (the Redmond company does not disclose official data, so these are estimates from market analysts).
