first_imgEven if the focus is shifting away from consoles and on to mobile devices, the next round of hardware from Sony and Microsoft will still shift millions of units. That must be a tempting proposition for any hardware partners either company is considering, but not Nvidia.Tony Tamsai, Nvidia’s senior vice president of content and technology, has said that providing hardware for use in the PlayStation 4 was on the table, but they walked away. Having provided chips for use in both the PS3 and the original Xbox, that decision doesn’t come without experience.Tamsai told GameSpot that negotiations were underway with Sony regarding Nvidia supplying components for the PS4, but ultimately Nvidia decided against it. The reason is one of cost and resources.Nvidia didn’t want to commit to producing hardware at the cost Sony was willing to pay. They also considered that by accepting a PS4 contract, they’d have to not do something else in another sector, e.g. mobile, graphics cards, Project Shield, etc. In other words, the PS4 is not a lucrative enough platform to consider when high-end graphics cards and the Tegra line of chips hold so much more revenue potential.And that’s ultimately the problem with consoles. Typically they are sold at a loss on release and then Sony/Microsoft continually scramble to reduce costs over the life of the machine in order to eventually make it profitable. That also means they put constant pressure on partners to offer the same parts at an ever decreasing cost, meaning their profits also get squeezed.Nvidia has already gone through this process twice over two generations of machine, and clearly it’s just not worth it. Now the focus is on AMD to deliver for the PS4. And it seems likely, based on Tamsai’s comments, that Microsoft has also partnered with AMD as has been rumored.last_img

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