[Animats]

SoC doesn't make as large of a difference as you'd think.

There are now enough transistors on chip for a reasonably good on-chip GPU. Plus you get better bandwidth between CPU and GPU. This is independent of the instruction architecture. The PS5's SOIC does some of the same things, though it's an x86 instruction set, not ARM.

Neither the PS5 nor the Xbox use AMD CPUs. Intel has a big problem.

[deafcalculus]

Both PS5 and Xbox use AMD Zen 2 CPU. I guess you meant that PS5 and Xbox don't use Intel CPUs.

I highly doubt Intel wants to be in the low margin business of supplying console CPUs. Intel's fortune is entirely dependent on whether it can get back advanced process node crown from TSMC.