Nvidia, Microsoft kiss and make up over Xbox II

A REPORT IN A TAIWANESE financial newspaper claims today that Nvidia will work with Microsoft on the design of the next Xbox - which, the paper adds, is likely to be demonstrated by the end of this year.

The Economic News, quoting CEO Huang Jen-hsun, said that Nvidia "will not interfere" with Microsoft procuring its chipsets - an odd statement that we don't really quite understand.

Currently, Microsoft and Nvidia are in arbitration after a spat earlier this year threatened to curdle the cream on the cat's whiskers.

Nvidia, apparently, is still pro-Xbox and believes that the console will snaffle the market with its acceptance better after just two years than Microsoft could have dreamed.

And Nvidia is set to show off graphics technology for mobile phones and PDAs (personal digital assistants), it appears. µ