Nvidia Continues with Sony 2006


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Nvidia Continues with Sony 2006

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ruby
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Mar 27, 2006, 9:02 PM

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Nvidia has a new design contract with Sony that will pay more than it earned for creating the graphics processor for the upcoming PlayStation 3 video game console.

Sony paid Nvidia about $30 million for designing the PS3's graphics chip, a fee that was paid out gradually as work on the processor was completed. Nvidia is expected to have revenue of about $2.8 billion this year, so the new design work would be just a small slice of its overall business.

In the case of the PS3, the engineering contract is the smallest of three revenue streams Nvidia collects. It also gets a licensing fee paid out each quarter until mid-2009 and collects a royalty on each chip Sony makes.

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DVG: Video Game Reviews & Cheats Playstation Forums General Playstation Forum

Nvidia Continues with Sony 2006