Microsoft and AMD's partnership for the Xbox One valued at over $3 billion dollars

Xbox One

For those that did not know, Microsoft's upcoming Xbox One is powered by an 8-core AMD processor. But did you know that the AMD/Microsoft deal when it comes to the new Xbox costs over $3 billion dollars?

According to Bob Feldstein's LinkedIn page, Microsoft and AMD's Xbox One project is valued at over $3 billion. Feldstein, who previously worked for AMD, currently works as the VP of Technology Licensing at Nvidia. His role in the Microsoft/AMD Xbox project was "focused on business management and supply agreement negotiations."

AMD pretty much provided Microsoft with a "custom silicon solution" to power the next generation Xbox entertainment console. "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, muti-year deals. This project is valued at $3+B," the LinkedIn profile stated.

Why $3 billion dollars? The amount covers expenses such as design of the chip as well as the parts required to supply the chip over the Xbox One's life cycle, obviously a multi-year deal. In retrospect, Sony reportedly spent $400 million on its Cell processor, in a partnership with Toshiba.

Microsoft's Xbox One has been in the news as of late, ever since its big revelation on May 21st. Expect the Xbox One to continue making the news as the software giant plans to reveal more about the Xbox One during the E3 entertainment expo in June.