Nvidia walked away from PS4 hardware negotiations

Nvidia walked away from PS4 hardware negotiations


Even if the main target is shifting faraway from consoles and on to mobile devices, succeeding spherical of hardware from Sony and Microsoft can still shift various units. that has to be a tempting proposition for any hardware partners either company is considering, however not Nvidia.

Tony Tamsai, Nvidia’s senior vice chairman of content and technology, has aforementioned that providing hardware to be used within the PlayStation four was on the table, however they walked away. Having provided chips to be used in each the PS3 and therefore the original Xbox, that call doesn’t return while not expertise.

Tamsai told GameSpot that negotiations were afoot with Sony concerning Nvidia provision elements for the PS4, however ultimately Nvidia set against it. the rationale is one in every of price and resources.

Nvidia didn’t wish to decide to manufacturing hardware at the price Sony was willing to pay. They additionally thought of that by acceptive a PS4 contract, they’d got to not do one thing else in another sector, e.g. mobile, graphics cards, Project defend, etc. In alternative words, the PS4 isn’t a moneymaking enough platform to think about once high-end graphics cards and therefore the Tegra line of chips hold most additional revenue potential.

And that’s ultimately the matter with consoles. usually they’re sold-out at a loss on unleash then Sony/Microsoft frequently scramble to cut back prices over the lifetime of the machine so as to eventually create it profitable. That additionally means that they place constant pressure on partners to supply an equivalent components at AN ever decreasing price, that means their profits additionally get squeezed.

Nvidia has already capable this method doubly over 2 generations of machine, and clearly it’s simply not worthwhile. currently the main target is on AMD to deliver for the PS4. And it looks possible, supported Tamsai’s comments, that Microsoft has additionally partnered with AMD as has been reported.

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