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View Full Version : A blow to Nvidia?


Dante
Aug 15th '03, 09:10 AM
Well now, this is a bit of interesting news.

<blockquote>Ati Beats Nvidia: Ati Chips in Xbox 2

Ati triumphantly announced to have signed a deal with Microsoft under which it will develop "custom, leading-edge graphics technologies for use in future Xbox products and services."

The current version of the console is powered by an Nvidia graphics chip. Nvidia must evidently have been disappointed to see its partner discontinue their cooperation, having announced during a recent conference call that a major portion of its revenue growth in the third quarter would be from its Xbox products, as Microsoft ramped up production for the holiday season.

Ati CEO K.Y. Ho in a statement cynically explained the agreement simply "cements ATI's position as the prime graphics supplier for the future of the games industry." </blockquote>
What I find disturbing is that Nvidia was already counting on the revenue from the upcoming Xbox deal, and now that it lost that what does that mean for Nvidia? Are we going to start seeing a decline in Nvidia's product line from them recovering from this financial bad news?

{OOE}Death
Aug 15th '03, 01:40 PM
hmmmmm 3DFX all over again. I like it.

D-Bone
Aug 15th '03, 02:13 PM
Nvidia will be fine. They were finacially stable before the Xbox and they'll be stable afterwards too.