NVIDIA Tegra strategy shifted to compute and gaming

In an interview with CNET, NVIDIA CEO Jen-Hsun Huang reveals his company is no longer targeting smartphones with Tegra. NVIDIA's mobile chip failed to gain a foothold in the smartphone market and now the company claims the focus is more on computing and gaming. Huang explains it's not NVIDIA's goal to go after commodity or mainstream devices, they want to be in performance-oriented, visual computing-oriented, gaming-oriented devices where they can add a lot of value.

Does that mean we're not going to see Nvidia in smartphones? You earlier said gaining share in smartphones was a matter of releasing a processor, called Tegra 4i, that integrated 4G with your apps processor. Has that not worked?

Huang: [Tegra 4i] wasn't that successful for us. I would say that when we first started this, we thought that bringing 4G to entry-level phones, mainstream phones, integrated with our apps processor would be a real opportunity. I think that the phone marketplace has commoditized really, really fast. It is not our strategy to go after commodity phones. It is not our strategy to go after mainstream devices. But our strategy is to focus on performance-oriented, visual computing-oriented, gaming-oriented devices where we can add a lot of value.