Intel draws the license, leaving the design without CPU core - doesn't make much sense either. Would Intel sell the license for a lot of money? Maybe,
If AMD goes under and MS and Sony get the manufacturing tools
for their console SoCs I would expect Intel to extend the x86 portion
of the IP license for the life of this product generation. It would be
a bit of extra dough and attenuates unwanted regulatory attention
from the fact that with no more AMD Intel then holds a monopoly
on x86. Say what you may about the ascendancy of ARM, x86 still
represents by far the most profitable franchise in the semi industry
and has an overwhelming lock on the computer industry.
but I would Intel expect to just take the business and sell their own CPUs.
1) This business is too low margin for Intel
2) Redesigning the silicon would take way too long for this console
generation.