Bob Fedstein, AMD’s former employee who is currently working for Nvdia said in his LinkedIn page that Microsoft had to cough out $3 Billion, in exchange AMD would provide a custom silicone solution for their gaming console.
Bob Fedstein also told about his involvement in this process. He said,”My involvement was focused on business management and supply agreement negotiations. This required the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, multi-year deals. This project is valued at $3+ Billion.“
It should also be noted that Microsoft plans to sell 400 Million to 1 Billion Xbox one units before the console outlasts its usefulness.