MS to pay NVIDIA for each XBOX 360 shipped

[monkeydust]

Well, that's huge news if this is true.

http://biz.gamedaily.com/features.asp?article_id=9761&filter=

Thanks to a number of analyst reports, it looks as if we finally have some more information on the 360's backwards compatibility and launch price point. Just like the original Xbox, it appears the 360 will come with a $299 price tag. The 360 should also be able to play the majority of the Xbox library, but Microsoft will have to pay Nvidia as a result.

Some details have trickled out, though, courtesy of Wedbush Morgan Securities analyst Michael Pachter. In a recent research note, Pachter confirms that Microsoft "has agreed to pay a small royalty to Nvidia to allow the Xbox 360's ATI chipset to emulate the performance of the Nvidia chipset in reading certain Xbox games." Nvidia, therefore, will not only be receiving royalties from its partnership with Sony for the PS3, but it will also still get small payments from Microsoft for every 360 despite the fact that Nvidia is no longer the GPU provider.

[JoKeRr]

OMFG lol that's like free cash for NV man, doesn't get better than better. gonna check their stock now.

[monkeydust]

I'm holding 2200 shares right now. ;)

Looking to sell someplace over $30.

[YOGIx213]

Lol... Funny if it's true. The irony of it all...

[shabby]

The only thing ms can do now is cancel the backward compatibility feature, but that would piss a lot of people off, and one less brownie point for the x360.

[Vagrant Zero]

Hahahhahahahahhahahahah.

[DBY]

OMFG lol that's like free cash for NV man, doesn't get better than better. gonna check their stock now.

Free cash maybe, but thats nothing compared to what they would have received if they had been appointed as the GPU supplier.

[brendan]

How is that free cash ? Nvidia owned the GPU design in the Xbox and they have to recieve royalty for it.

If Nvidia didnt fight for it Microsoft would have recieved free cash by avoiding to pay Nvidia.

[LiquidX]

MS must have had a very screwy contract with Nvidia for something like this to be happening. The games were designed from software not hardware and further there wont be any Nivida hardware in the 360 but yet they have to pay to emulate the games? :confused:

[brendan]

MS must have had a very screwy contract with Nvidia for something like this to be happening. The games were designed from software not hardware and further there wont be any Nivida hardware in the 360 but yet they have to pay to emulate the games? :confused:
Because they are emulating Nvidia hardware (Xbox gpu) on the Xbox 360, they have to pay.

[Richthofen]

:) best news ever....
Nice to see that a small company like Nvidia has no fear about M$ and caught them with their panties down.

[Vagrant Zero]

Free cash maybe, but thats nothing compared to what they would have received if they had been appointed as the GPU supplier.

They can't supply cards to both Sony AND MS at the same time. And given those two choices Sony defintely cut them a sweeter deal. And they'll recieve more royalty from the PS3 if it sells like the PS2.

[Richthofen]

They can't supply cards to both Sony AND MS at the same time. And given those two choices Sony defintely cut them a sweeter deal. And they'll recieve more royalty from the PS3 if it sells like the PS2.
further on their deal with sonies goes alot further than PS3 alone.
The deal enables them to sell GPU technology to Sony for a lot of multimedia stuff, PDAs phones and so on....
M$ cant offer that to Nvidia.

[monkeydust]

NVIDIA is speaking in a conference with Bear Stearns tomorrow afternoon. I hope they discuss this and it gives to stock price a bump.

[shabby]

:) best news ever....
Nice to see that a small company like Nvidia has no fear about M$ and caught them with their panties down.

Thats what happens when your a noob in the console scene, you get taken advantage off :D