Nvidia anticipates big bucks from Playstation 3 deal

A YEAR AND A HALF ago, Sony asked Nvidia to provide a graphics chip to power its PS3 console, after the graphic performance of its own complex Cell chippery proved pretty disastrous.

Having got itself in a bit of a pickle, Sony didn't have much choice other than turn to Nvidia. Microsoft and Nintendo were already working with ATI for the chips for their graphics consoles. There was no-where else to turn.

Nvidia told Sony that its best chip for the job would be its G71 - a G70 manufactured on 90 nanometre process - and that it would be able deliver the volumes of these chips by shipping date.

And, knowing the bind Sony was in, Nvidia was able to extract a great price from the Japanese giant, our sources claim.

Nvidia has been solidly producing G71 chips for a quarter now and many of these chips are reserved for Sony. The mighty Sony might be set to launch its console by the end of the year and Nvidia will have to ramp as many chips as Sony needs.

According to our whisperers, is that instead of two to three bucks per RSX, G71 chip, which is Nvidia's usual rate, Nvidia got seven - or more - bucks per chip. It means that Nvidia really wants to sell its G71 chips to Sony and that it will be making much more money on the consoles than ATI with its Xenos chip for the Xbox.

And Nvidia has plans to shrink the G71 die to 65 nanometres in the second half of 2007. That will allow it to make even more money on the chips, as you can put more 65 nanometre chips on a 300 millimetre wafer.

So suddenly, after finding the troubles with Cell became a blessing for Nvidia, the graphics chip firm will now be praying Sony can ship its Playstation 3 consoles on time, or thereabouts. µ