How PlayStation 4 Saved AMD from Bankruptcy

A senior AMD employee reveals the crucial role Sony's PlayStation 4 played in rescuing the chipmaker from financial ruin a decade ago. Learn how .

PlayStation 4 Credited with Saving AMD from Bankruptcy

In a revelation that highlights the intertwined nature of the tech industry, a senior AMD employee has revealed that the PlayStation 4's success played a pivotal role in saving the chipmaker from bankruptcy a decade ago.

PlayStation 4 Credited with Saving AMD from Bankruptcy

Renato Fragale, AMD's current Sr. Director of OEM Consumer & Gaming Client Business, shared this insight on his LinkedIn profile, where it went largely unnoticed until recently. Detailing his responsibilities as Sr. Manager Product Development Engineering from 2012 to 2014, Fragale mentioned his team's involvement in the "product development team for Sony PlayStation 4 (PS4)." He described the console's launch as "one of the most successful launches in AMD history," emphasizing that it "helped AMD avoid bankruptcy."

This claim is supported by AMD's financial records from that period. In 2013, the company reported a net loss of $83 million, accompanied by a 2% decline in year-over-year revenue. However, following the PS4's launch, AMD experienced a significant turnaround, achieving a 4% year-on-year revenue increase and reaching $5.51 billion.

The PS4, powered by a custom AMD Jaguar CPU and GCN architecture GPU, went on to sell over 117 million units, solidifying its place as one of Sony's most successful consoles. This success, in turn, breathed life back into AMD, allowing the company to regain its footing and ultimately become a dominant force in the CPU and GPU market.

This revelation underscores the significant impact strategic partnerships and the success of a single product can have on a company's fate. Without the PS4's triumph, the technology landscape might look drastically different today.

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