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IMO they went AMD because that was the only real option left. PPC was dead by then outside of big IBM servers and ARM was just getting into low-end x86 performance levels. If PPC was still getting improved in the embedded space I think they might have went that way for backwards compatibility reasons.


IBM put in a bid for PS4 (based on Power7 IIRC) but it wasn't selected. I think the convenience of getting everything from AMD helped them take over consoles.


AMD was also able to offer up an APU (GPU integrated with CPU) vs separate chips that would have increased cost and complexity.




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