Wednesday, December 8, 2004
After losing out on a bid to be a supplier to Microsoft for its next-generation Xbox video game console, chipmaker Nvidia has landed a contract with Sony to make graphics chips for the coming upgrade of the rival PlayStation
Nvidia now makes the graphics chips for the Xbox, but Microsoft decided to give the contract for the next generation product—scheduled for release next year—to Nvidia’s competitor, ATI Technologies. The Sony contract keeps Nvidia in the game business. Terms of the deal were not announced, but analysts say it might bring in $5 per chip to Nvidia, or perhaps $100 million.