"I'm sure there was a negotiation that went on," Tamasi told sources, "and we came to the conclusion that we didn't want to do the business at the price those guys were willing to pay".
He also added: "Having been through the original Xbox and PS3, we understand the economics of console development and the tradeoffs."
Sony's reason for choosing AMD to build the PS4's GPU is probably a secret which will stay within the PlayStation executive circle.
It is thought that AMD did win the contract to build GPUs for thes next Xbox, though this information has yet to be confirmed.
Tamasi seemed to suggest that Nvidia is not too discouraged about losing out on a major deal.
"We're building a whole bunch of stuff," he said.
"In the end, you only have so many engineers and so much capability, and if you're going to go off and do chips for Sony or Microsoft, then that's probably a chip that you're not doing for some other portion of your business.
"And at least in the case of Sony and Nvidia, in terms of PS4, AMD has the business and Nvidia doesn't. We'll see how that plays out from a business perspective I guess. It's clearly not a technology thing."
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