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Nintendo contracts AMD to power next-generation game console

Back in May Nintendo already confirmed that it had started development of its next-generation home console. In October it also transpired that the company would design system-on-chip for its forthcoming system in the U.S. According to a new media report, Nintendo contracted AMD to provide graphics processing technologies for the device.

Expreview reports citing industrial sources that Nintendo’s next-gen console will use AMD graphics technologies as well as IBM Power general-purpose processor. The new system-on-chip for the console is expected to be dramatically more powerful than the SoC, which powers current-generation Nintendo Wii U. The SoC has to outperform application processors that power Microsoft Xbox One and Sony PlayStation 4 to enable higher quality video games.

Nintendo has used IBM Power processors and AMD graphics inside its consoles for many years, therefore, it is not surprising that the company decided to retain its technology partners. However, the choice of AMD means that game developers will have to write completely separate code for the console as rivals of the latter use AMD's x86 processors. What is unclear is whether AMD will only license a graphics core for the new console, or will develop the SoC for Nintendo and then will sell it to the company (just like it does with application processors for Microsoft Xbox One and Sony PlayStation 4). Given that AMD does not have access to IBM’s Power processor IP, it should first sign an agreement with IBM and only then it will be able to design the processor.

nintendo_wii_u_soc
Nintendo Wii U system-on-chip

Nintendo needs a new console to replace the Wii U since sales of the latter are very low in the U.S. and Europe. It is unlikely that Nintendo will introduce its new console in 2015, but in 2016 or 2017 it will be the right time for the company to release a new system

AMD, IBM and Nintendo did not comment on the news-story.

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KitGuru Says: Recently AMD confirmed that it had won two semi-custom SoC contracts with undisclosed companies. Unfortunately, the potential revenue for two contracts is about a billion of dollars, which is a lot less than AMD can make selling chips for a game console. Therefore, we cannot consider AMD's claims as indirect confirmation of the contract with Nintendo.

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11 comments

  1. When you are Nintendo, in the position that Nintendo is today, you don’t go and sign a multi billion contract. You sign for 1 billion and the chance to expand that contract latter, if people buy your console. So that 1 billion in my opinion is not a reason to say that Nintendo is not the company in AMD’s announcements.

    One correction

    However, the choice of AMD means that game developers will have to write completely

    You mean IBM

  2. Same typo I saw. Read it twice, like what? lol

  3. The author is completely wrong.
    AMD hinted that they had two custom design wins: one x86 APU and the other an ARM APU. The author’s prognostication is neither. This doesn’t make sense for two reasons.
    1. AMD is already producing custom discrete GPU’s for the failed WiiU. It is unlikely that Nintendo is refreshing WiiU with something so mundane as a WiiU.01.
    2. A discrete GPU would not generate the revenues stated either. Neither would the royalties from an IBM designed Power PC SOC. No, Read said AMD had SOC wins that means CPU + GPU.
    I think that Nintendo is releasing a Gaming Tablet similar to nVidia’s Shield but with a little more poop under the hood than Tegra K1. If Nintendo wanted an ARM processor then why not nVidia’s Tegra? No Nintendo wants Radeon. It just remains to be seen whether it is x86 or ARM. But whichever it is, it is likely that the APU will be a 14-20nm chip. Don’t forget that nVidia has already offered to license it’s graphics IP to ANYBODY. And there were no takers.

  4. I think Nintendo will leave PowerPC and go for X86 or ARM couple with GCN cores. AMD’s APU technology is a proven and there is no doubt about it. Especially the X86 option will ease development and accelerate design. They just need to give AMD the specifications and let its engineers cook a chip for them.

  5. Carlos Quiroz Mandela

    This would have been a great opportunity for Mantle.

  6. Some peoples think Nintendo are low on cash, hahahahahaha. Nintendo has more cash in the bank than every one think. They will construct a brute force console to smash all competition but simply there is not their business, This kind of machine will come with price and graphics chips manufacturers don t do a powerfull one cheap. Any way console manufacturers inflate to much the specs of their consoles, don’t believed? How is possible that Sony and Microsoft consoles cant hit full1080p 60fps on some games like watch… in your second generations HD consoles?????? Remember their developed a 9 cores cell based console and a power pc tri core at 3.5 ghz they said. If you do the math you pay for a console that in theory will be 6 times the predecesors power, and funny ps3 and xbox 360 also released the games at near 720p ??? What next a new Sony , Microsoft $750.00 consoles that runs a secuel of these games at 1020p??? 🙂

  7. I still entertained with my old games , any way I don’t want a new console capable of pc games. Fun games , to esplore , fight ,solve things. I so tired to this game s with a gun on near center of the screen again and again. Same game more espensive every time

  8. Don’t forget that nVidia has already offered to license it’s graphics IP to ANYBODY. And there were no takers.

    Source? I’m not being adversarial, I just haven’t heard of this and I’m curious.

  9. http://www.tomsitpro.com/articles/nvidia-gpu-licensing-intellectual-property-graphics,2-582.html
    http://www.xbitlabs.com/news/graphics/display/20140219235248_Nvidia_Has_Not_Signed_a_Single_Kepler_IP_Licensing_Deal.html

  10. In my opinión videogame industry need to dead for some time. Tecnologies changes fast and devices that we recognices as game consoles will desapear soon. On 16 bits era the chips be made using 1.5 microm process and consoles dont own more than 2mb on board ram, The full console size and weight are small to médium. Now actual consoles are made using nanometers and multicore cpus, more tan 2gb on board memory , hd, os, internet acess and consoles are médium to big size. The cost of developing are very hight so old companies disapears forever. Now things are changed again because companies know that limited the console to play only in your living room are not funny $$$$$$$$$$ lol! any more. But games continued to be near identical gameplay with betters visuals . Real nanotecnology are capable to put a 8x ps4, or x1, wiiu in the palm of your hands and only with a Little ounces of weight. Why are one people need to spend $1500 on a videocard and a $3500 in a full “gaming pc” if any way you only can play the same games that play on your $650 clon? Some one need to do something diferent, and Phone markets own billions of devices more dan 4k billions vs less tan 500 m units of all consoles combined. Time to change the market and the rules of the game.

  11. You have quite likely pointed out the major reason that IBM PowerPC is not a candidate for Nintendo.
    PowerPC is possible but I think the odds favor an AMD x86-64 APU for several reasons.
    Mantle and DX12 offers too much of a perfromance increase to ignore.
    Sole source keeps the cost low, no need to negotiate with two designers AMD and IBM. Since the CPU is NOT the major player but rather the Radeon cores any integrated CPU-GPU deal with Nintendo would also have to include a licensing deal with IBM. Or vice-versa. Since IBM has NO history of building Radeon powered IGP then I do not see IBM being in the drivers seat here.
    Also develpment costs marrying a multi-core x86 cpu with a Radeon GPU will be far cheaper with AMD than with IBM/AMD. The portfolio is already there all Nintendo needs to do is tweak it some.
    And AMD did indicate two SOC’s an x86 and an ARM. A three year life cycle for a Nintendo console is likely and would compare similarly with PS4 and XBOX sales numbers. So given the above I think that AMD is building a custom x86 APU for Nintendo with probably a fixed quantity of silicon as Nintendo wants to be conservative on sales expectations first.
    I also think that the ARM SOC could be for a Server builder such as Facebook etc. We already know that Facebook paying AMD to develop a custom ARM server silicon. Here they are hiring for ARM software engineer.

    https://www.facebook.com/careers/department?dept=engineering&req=a0IA0000006cPTMMA2