RUMOR: Microsoft Interested in Buying AMD

Is there no end to Microsoft’s thirst for acquisitions?!?!?

Posted By | On 30th, Jun. 2015 Under News | Follow This Author @Pramath1605


It appears that the computing industry, as well as the gaming industry, may be headed for a tectonic shift of balance- a new rumor states that Microsoft is looking into purchasing CPU and GPU maker AMD a bid to revive its chip design operations. Apparently, Microsoft initiated the talks a few months ago, though it is unclear exactly what has come about from these.

Buying AMD would have multiple strategic advantages for Microsoft- on a larger, macro company wide basis, Microsoft would be able to custom tailor and design chips for its hardware, potentially integrating the software and hardware on its Lumia and Surface product lines far better; this may also provide Microsoft with a foot in the door as far as the future of the computing industry is concerned.

Moreover, Microsoft would also benefit greatly on the gaming front- analysts estimate that Microsoft pays roughly $100 for every Xbox One sold to AMD in royalties (the Xbox One utilizes an AMD SoC). Given the lifetime sales of Xbox One at around 12.6 million units, this means that Microsoft has already paid AMD around $1.26 billion for Xbox One chips. The acquisition of AMD could save it around a billion per year on Xbox One chips alone, which would come as a welcome break to the beleaguered gaming division that has traditionally struggled to stay in the black.

Presuming Microsoft wants to continue licensing out AMD chips, and not keep them completely in house (something that is a common practice in the industry, and also something that Microsoft is wont to do, given how it handled its acquisition of Minecraft last year), it would earn money from each PS4 or Wii U system that is sold in licensing, since both those systems utilize AMD SoCs as well; moreover, Microsoft would also have a direct stake in PC gaming, given AMD’s prominent position in the PC CPU and GPU market.

It sounds like it would be a very smart move on Microsoft’s part to acquire AMD, then, but there are other things that must be considered- for instance, the action may be viewed as anti competitive by Anti Trust commissions, and Microsoft already has enough trouble on that front. Moreover, Microsoft shares a very close relationship with chip maker Intel, and an acquisition of chief rival AMD is undoubtedly going to alienate them.

But still, it seems as though the pros might outweigh the cons. Whether or not the talks go through, the next few months promise to be very interesting.

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  • Devon Day

    Well, Anti first will be pushed over the edge even further should this happen.

    • Mike Norris

      ATI needs money which AMD lacks atm so this would be a step in the right direction.

    • Devon Day

      Even so, Anti Trust doesn’t care either either way. Nvidia, Intel, Sony, and possibly Nintendo (hardware will depend on that) are going to raise a storm about it.

  • Kfal Balli

    Would be great for MS. It would be like when samsung sells chips to apple and sony. Definitely a game changer.

  • Terminator

    GO MICROSOFT!!!!! Who doesn’t want the his competition to be paying you! Buy it Microsoft!!! (well that would be me if this was true…though I hope it is)
    If this rumor were to be true I know a certain group and a certain someone would damage control till no more can be done.

  • 2econd gpu unlocking

    We agree to this and we’ll ask them to buy AMD.

  • Psionicinversion

    its not going to save them much because AMD barely make any money per unit on either consoles chips so only thing it will do is get sony to pay for xbox chip :d

    • Mike Norris

      Pc market……nuff said.

  • *Also On PC

    Maybe AMD cards would actually get drivers for once

  • theduckofdeath

    Just do it before Apple does.

    • Ben


  • Mike Norris

    I am actually all good for this AMD needs more RnD MS will provide it.


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