AMD making next gen consoles?

$$$

its cheaper than intel

AMD is usually cheaper than Intel. That's why console makers made a deal with them.

in my experience AMD perfoms pretty much on par and at a cheaper price than intel

Because AMD has both an APU and more importantly, proper GPU technology and they can deliver it as a complete solution. Intel does not possess the technology to deliver such a solution.
Look the the architecture of the PS4

becoz of HSA (Heterogeneous System Architecture), google it!

Maybe AMD was cheaper ? :D

AMD is better

Combination of integration and performance. (I just saw an article about this yesterday, but I'm too lazy to search for it.)

Short of it: Going for an Intel CPU would have required a discrete graphics chip, going for NVIDIA would have required a discrete CPU. AMD provides an integrated APU with decent (even if not stellar) CPU and GPU performance. (Integrated is an issue of both price and performance.) The alternative integrated solution would have been an ARM CPU, but that's considerably weaker.

Such a misleading title.

Reason is APU. (processor and graphics on one chip).

Only AMD does have technology currently that can produce APU with strong enough GPU (graphics). Intel do APU too, but have weaker graphics so it could not have been chosen. Nvidia does not and can't produce x86 processors so it could not supply such APU.

Reason is that AMD could provide product other could not.

All the above are wrong. Intel deliberately let AMD win. You know why? Because AMD is barely afloat now and Intel is very pleased with "competition" having 15-20% of the market. Better let AMD win some extra profit in niche, non-progressing market than to have them bankrupt and Intel being forcibly divided by anti-monopoly laws into several companies.

probably amd has better salesmen than intel

When was the last time an Intel CPU was inside a console?

AMD
next gen

Price, that's the main issue with Intel and Nvidia. M$ and Sony knows that after first Xbox (original Xbox) and huge problems with Nvidia and their pricing.

Considering that games on E3 were still presented on Windows 7 PCs ran by nVidia GPUs, you can guess. Definitely not performance. (strictly talking about GPU)