AMD are a huge player in the console market, with its chips powering the key players including Sony and Microsoft, and the expense of this component is a factor in the overall price point of the games machines.
AMD's CEO Lisa Su, talking at a CES round-table with techradar in attendance, confirmed that there was going to be an opportunity in the current generation's life-cycle to develop new technology that will allow for a price drop without impacting on performance.
"The consoles work on a five to seven year strategy, that's the lifetime for these consoles," said Su.
"Without talking about any particular party's console - there will be opportunities to cost-reduce.
Price cuts, more sales
"Consoles tend to be very sensitive to price point, we see that as price comes down console [sales] volume goes up, and that will afford an opportunity to do that in this cycle."
Although there was no time frame put on this move to a new chip architecture, we are now heading into the third year of the current generation, fast approaching the likely mid-point of the life-cycle.
There have traditionally been mid-production changes to console manufacturing that lowers costs, so this isn't a huge surprise. But the prospect of a major drop for Xbox and PS4 will be encouraging for many who find the current price steep.
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Patrick Goss is the ex-Editor in Chief of TechRadar. Patrick was a passionate and experienced journalist, and he has been lucky enough to work on some of the finest online properties on the planet, building audiences everywhere and establishing himself at the forefront of digital content. After a long stint as the boss at TechRadar, Patrick has now moved on to a role with Apple, where he is the Managing Editor for the App Store in the UK.