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[SA] Was Nvidia's Sacrifice Worth It?

post #1 of 33
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Quote:
According to the technology news site Fudzilla, Nvidia (NVDA) sacrificed the game console deals to concentrate resources on the smartphone/tablet push. According to the site, Nvidia's decision was deliberate and dates back a few years. The rationale was that from a long-term growth perspective, the mobile chip focus is just a better financial bet than building an integrated console part. In this article, I give my views on why this decision made sense for Nvidia, and why AMD was probably better suited to land the console gig anyway.

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post #2 of 33
rather..... interesting. redface.gif
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post #3 of 33
This is a really good read, nice find.
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post #4 of 33
There is a rational business decision behind every choice they make.

I'm sure they saw a larger profit possibility freely-chasing after the mobile market than producing millions of the same dies for consoles.

In the end, the whole console fiasco was a win-win for AMD, Intel and nVidia.

For AMD, I'm pretty sure it has to do a lot with the company staying afloat for the next few years and ensuring stockholder confidence.

For the two other guys, It keeps them out of the bullseye of the government as possible market monopolies.
Edited by Raven.7 - 3/3/13 at 4:07pm
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post #5 of 33
Interesting. I wouldn't want to be bogged down with console business long term either. Diminishing returns.
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post #6 of 33
Quote:
Originally Posted by WorldExclusive View Post

Interesting. I wouldn't want to be bogged down with console business long term either. Diminishing returns.

Diminishing returns happens for every product at some point.
post #7 of 33
Nvidia graphics in consoles could of pushed Physx in more multi-plats. That's the way I would of went if I was them.
post #8 of 33
Nvidia's Tegra (which uses ARM processor) is going to be stomped by other ARM stuff in smartphones and tablets...

ARM has such a large presence it's going to be hard for Nvidia and Intel to compete

Another problem is the only real applications for graphics power in Tablets/smartphones is games, movies, and 3d accelerated apps.
Edited by AlphaC - 3/3/13 at 4:50pm
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post #9 of 33
Quote:
Originally Posted by raptorxrx View Post

Diminishing returns happens for every product at some point.

The difference here is that they're obligated to provide chips for years into the future. If their financial outlook changes and need to switch their focus, they can't.
AMD could be providing chips for the sake of prodiving chips in the end. I can see why Nv didn't want to go that route.
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post #10 of 33
An SA article about Nvidia, I wonder how this is going to turn out rolleyes.gif

At any rate, Nvidia or Intel wasn't going to beat AMD on Consoles anyway since it is much easier for the manufacture to get CPU+GPU from the same manufacturer, it is even better to get a customized APU unit(an 8 core X86 APU with 7850 quality parts isn't something Intel or Nvidia could produce without merging). AMD had the console contract in the bag ever since they bought ATI. So it wouldn't suprise me if they give up on the next gen console bid long before the actual bid.
Edited by sherlock - 3/3/13 at 4:51pm
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