We made the statement quite a while ago that NVIDIA is probably more at risk in the upcoming competitive environments than any other high profile tech company.
AMD buying ATI fully changed the way business will be done in the computer industry. AMD having massively powerful CPUs and GPUs, sometimes on the same die integrated into the system; will be a package deal that is going to carry big clout across the industry especially in the mobile space. NVIDIA does not have a partnership that gives it this selling advantage. Intel seems to have no interest in partnering tightly with NVIDIA and is moving on to hammer out its own high-end graphics division. This is quite simply going to have a hugely negative impact on NVIDIA in the long run.
Apparently, NVIDIA feels as though that is certainly a possibility according to todayâ€™s Form 10-Q, Q3 FY 2008. The quotes below are taken from the Risks Related to Our Competition section beginning on page 47.
I think we are going to very soon see a â€œnEWâ€ NVIDIA in terms of how it does business. We have confirmed in North America that NVIDIA will soon be in bed with VIA Technology on the chipset front and you can count on NVIDIA leveraging Centaurâ€™s Isaiah processor (Picture Tour here). Which quite frankly is likely to work out very well for VIA considering NVIDIA can bring a level of marketing and sales to that product that VIA just simply cannot match in-house. I am still not sure of just how much of a positive this will be for NVIDIA looking long term.
There is also more there worth reading about customer base and PlayStation 3 in the Risks Related to Our Partners and Customers starting on page 45 of the 10-K.