While the article focuses heavily on the impact to Intel, it does reveal that backwards compatibility is of enormous importance to PlayStation: "Moving from AMD, which made the PS5 chip, to Intel would have risked backwards compatibility, which was a subject of discussion between Intel and Sony engineers and executives, the sources said."
Apparently, if Sony had selected Intel, it "would have been costly and taken engineering resources" to ensure backwards compatibility, making AMD a much more appropriate partner. PlayStation also disagreed with Intel on price, with the Californian company wanting to take a greater profit on each chip sold.
Discussions allegedly occurred over a period of months, and involved CEOs, dozens of engineers, and many other high-profile executives. In the end, Sony selected AMD to manufacture the chip for the PS6, which is now presumably deep in development. While the next-gen console's currently unannounced, we'd expect it to be officially revealed in 2026 or 2027.
Last week, Sony revealed the PS5 Pro which is designed to expand the lifecycle of its current console by providing a more powerful option. While it features significant hardware improvements, including an advanced GPU and AI-powered upscaling technology, many haven't been impressed with its $700 price point – prompting many to ponder how much the PS6 could cost at launch.