Nvidia To Be Unaffected By Possible Sony PS3 Delay
Sales of Nvidia graphics chips should not be affected by a possible delay in the launch of Sony?s PlayStation 3 game console since the company is only licensing graphics technology to Sony instead of producing silicon. Shares of nVidia (NVDA) are down $1.16 this second and trading at $45.30 per share.
Nvidia CEO Jen-Hsun Hwang, however, admitted in a conference call that the company would not receive any royalty payments during the current quarter (ending April) from Sony, despite the fact that Nvidia?s RSX graphics chip, the PS3?s graphics engine, is ready, according to a February 17 report by Realm Media Networks. Sony is likely to outsource production of RSX chips to IBM or Taiwan Semiconductor Manufacturing Company (TSMC), according to sources at Taiwan contract makers.
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