AMD’s finances have been on a bit of a roller-coaster lately, but Wedbush Securities Analyst and crystal ball holder extraordinaire Michael Pachter feels that this won’t spell trouble for Sony and Microsoft’s new consoles, that are powered by AMD chips, as he explained during the latest episode of his Pach Attack videocast.
Pachter feels that Sony and Microsoft have “done their homework” before contracting AMD, and that they obviously think the chip manufacturer won’t go out of business. That said, even if AMD started looking like they’re really in trouble, Sony and Microsoft would just increase their chip orders to stockpile them, and this would probably save the manufacturer anyway.
In this case, it’s hard to disagree with Pachter. AMD’s finances have been in the current situation for a while, and it’s actually quite likely that contracts with Sony and Microsoft will help the company out of its own financial woes. In any case, Sony and Microsoft wouldn’t have contracted AMD to begin with if they felt the situation of the company wasn’t solid enough to warrant a long-term relationship.