diff --git a/.pick_status.json b/.pick_status.json
index ca4bf4940de..642296a7901 100644
--- a/.pick_status.json
+++ b/.pick_status.json
@@ -4,7 +4,7 @@
         "description": "intel/dev: Update hwconfig => max_threads_per_psd for Xe2",
         "nominated": true,
         "nomination_type": 4,
-        "resolution": 0,
+        "resolution": 1,
         "main_sha": null,
         "because_sha": null,
         "notes": null
diff --git a/src/intel/dev/intel_hwconfig.c b/src/intel/dev/intel_hwconfig.c
index d8ec93be207..7ec8ac387eb 100644
--- a/src/intel/dev/intel_hwconfig.c
+++ b/src/intel/dev/intel_hwconfig.c
@@ -217,9 +217,13 @@ apply_hwconfig_item(struct intel_device_info *devinfo,
       break;
    case INTEL_HWCONFIG_TOTAL_VS_THREADS_POCS:
       break; /* ignore */
-   case INTEL_HWCONFIG_TOTAL_PS_THREADS:
-      DEVINFO_HWCONFIG(max_threads_per_psd, item->val[0] / 2);
+   case INTEL_HWCONFIG_TOTAL_PS_THREADS: {
+      unsigned threads = item->val[0];
+      if (devinfo->verx10 == 125)
+         threads /= 2;
+      DEVINFO_HWCONFIG(max_threads_per_psd, threads);
       break;
+   }
    case INTEL_HWCONFIG_URB_SIZE_PER_SLICE_IN_KB:
       DEVINFO_HWCONFIG(urb.size, item->val[0]);
       break;