Nvidia Has Very Likely Landed the Sony PSP-2 graphics design contract. ETA: 2008 - Handheld

This is a discussion on Nvidia Has Very Likely Landed the Sony PSP-2 graphics design contract. ETA: 2008 - Handheld ; http://today.reuters.com/business/ne...yID=nN23330678 ________________________________ Thursday 23 March 2006, 4:04pm EST SANTA CLARA, Calif., March 23 (Reuters) - Graphics chip maker Nvidia Corp. said on Thursday it has a new design contract with Sony Corp. that will pay more than it earned for ...

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Thread: Nvidia Has Very Likely Landed the Sony PSP-2 graphics design contract. ETA: 2008

  1. Nvidia Has Very Likely Landed the Sony PSP-2 graphics design contract. ETA: 2008

    http://today.reuters.com/business/ne...yID=nN23330678

    ________________________________
    Thursday 23 March 2006, 4:04pm EST


    SANTA CLARA, Calif., March 23 (Reuters) -

    Graphics chip maker Nvidia Corp. said on Thursday it has a new design
    contract with Sony Corp. 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'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.

    "We have a contract to do engineering work for them. I don't think I
    should discuss what that product is," Burkett said.

    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.

    Nvidia's chief competitor is ATI Technologies Inc. of Canada, which
    makes the graphics chips for Microsoft Corp.'s Xbox 360 game console,
    which went on sale last November."
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    *****now here is what Uttar on Beyond3D had to say about the Webcast
    for******
    "NVIDIA Analyst Day"

    Uttar wrote:
    __________________________________________________ _____

    "The webcast itself has a few nice graphs, for example comparing
    revenue per wafer in the last 10 quarters or so, and OPEX evolution,
    however. So if you're interested in that kind of thing BIGTIME,
    listening at least to those parts can't hurt. Personally, I love some
    of their strategic highlights, and their hints for Q2 are highly
    positive - so, if anything, I'd conclude that buying NVIDIA shares at
    this point might be an excellent idea.

    Anyway, for the rest of you (read: everyone but me on this forum,most
    likely), I'd say the primary highlight is what they call "NRE2" Revenue
    with Sony and the massive talks of handheld. They also got a slide with
    "growth opportunities" listing portable game consoles-like devices as
    "30M units per year" for them, in the "CE" category along with PS3.
    Overall, it is plainly obvious that NVIDIA is working with Sony on
    PSP2. They expect NREs to last nearly two years on that, so I'd expect
    it to be a mid/late 2008 part. Anyway, here comes to
    mini-pseudo-transcript!"
    ______________________________________


  2. Re: Nvidia Has Very Likely Landed the Sony PSP-2 graphics design contract. ETA: 2008

    forgot the link for Uttar's comments:

    http://www.beyond3d.com/forum/showthread.php?t=29406


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