Former AMD staff claim Sony working on new console

Sony is busy with a new console in development claim former employees of AMD, and the chip manufacturer may have landed a contract for their designs to be part of the new PlayStation.

The PS3 design features technology designed by Nvidia while Xbox 360 favours AMD. Sony and AMD have given no comment, but the chip company say gaming will drive revenue in 2012.

The PS Vita has just been unleashed on the world but speculation of a new home console in the design process just keeps on building. Are Nvidia resigned to lose out?