AMD CEO Dr Lisa Su, recently in an interview with CNBC stated that the company was “working with both Sony and Microsoft on consoles” and their “secret sauce”. This pretty much confirms that AMD are working on both the Sony PS5 and the Microsoft Xbox Project Scarlet.
The usage of “secret sauce” here obviously implies that the innards of both next-gen consoles will most probably be powered by AMD hardware.
It also apparently implies that both next-generation consoles will contain hardware tailored specifically to them, more so than ever seen before. We would see larger hardware differences between the generations than ever seen before.
Right now, AMD powers the PS4/PS4 pro and the Xbox One/Xbox One X consoles. It also powers the Zhongshan Subor Ryze+Vega console/PC hybrid system, that’s exclusive to China. They’re the go to for custom silicon and it looks like it’ll stay that way for the time being.
Compared to other companies, AMD has an upper-hand of sorts, with Intel lacking in the graphics department, and Nvidia lacking in the CPU department, aside from ARM offerings. It should also be noted that Nvidia is not as flexible as AMD either when it comes to custom silicon. The Nintendo Switch console uses Nvidia’s Tegra X1 chip, which was used to power Nvidia’s Shield. It uses the existing Tegra, and not a bespoke version of the graphics architecture.
At least for these reasons, AMD has a reasonably strong future in the console market.