NVIDIA gets new design contract from Sony for PS3

Posted on Saturday, March 25 2006 @ 2:20 CET by Thomas De Maesschalck

NVIDIA has a new design contract with Sony, Reuters reports.

Thanks to this new contract NVIDIA will earn more for creating the graphics processor unit of the upcoming PlayStation 3 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's chief financial officer Marv Burkett said.

"We had anticipated that (contract revenue) would drop off, but that's not going to happen," Burkett told financial analysts. "We have new contracts with Sony to do some further designs."

Revenue from the new contract would be "probably slightly more" than the first and would continue into 2007, Burkett said.

Burkett declined to reveal what the design work was for.

The news article is rather vague but this could maybe mean that Sony has hired NVIDIA to further improve the PS3 GPU.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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