> Xbox and Playstation dont earn AMD much profits at all
It doesn't cost them much either. Lisa Su, in an interview that was posted to HN a few months ago, said it is a deliberate strategy to repackage IP AMD has already developed. They are willing to pull designs from the shelf and customize it to meet partners needs. Having a long tail of products adds up, and sets you up to get first dibs on higher margin partnerships in the future.
It doesn't cost them much either. Lisa Su, in an interview that was posted to HN a few months ago, said it is a deliberate strategy to repackage IP AMD has already developed. They are willing to pull designs from the shelf and customize it to meet partners needs. Having a long tail of products adds up, and sets you up to get first dibs on higher margin partnerships in the future.