IBM Biggest Winner in Video Game Consoles Market; Targets $20B by 2015
As recently as 2004, IBM was struggling with its chip-making business unit.
Sales of chips to other companies remained flat that year and the unit that includes chips lost $252 million in 2003. Now, because of the video game deals, IBM is expected to see about $3.7 billion in sales of chips and associated design services this year, up from $2.9 billion last year and $2.5 billion in 2004.
IBM's new "technology collaboration solutions" unit (using the engineering consulting work it did for Microsoft, Nintendo and Sony as a model) is expected to post $4 billion in revenue this year. Internal projections call for that division to hit $10 billion by 2010 and $20 billion by 2015 (via AP). IBM executives credit their deals for the three game consoles to key decisions that date to the 1990s, including a plan to aggressively redesign IBM chips.