nVidia clashes with Microsoft over Xbox chip pricing
Slowing Xbox sales start straining ‘wonderful relationship.’
Graphics chip supremo nVidia has stated that it is in arbitration with Microsoft over the future pricing of Xbox components.
Chief executive Jen-Hsun Huang stated, “We're delighted we have a wonderful relationship with Microsoft and are working on many fronts together and the arbitration is just a step in an overall process in resolving this thing. In the meantime we're recognising the difference between what Microsoft is paying and the price they believe they should be paying as deferred revenues.” He went on, “When all this gets resolved, my guess is it'll be a pretty dramatic positive impact on our business," Huang said on a conference call to discuss the new guidance. “All of our guidance we've given to you guys in the past is consistent with the conservative position we've taken with Xbox."
nVidia makes two key components that power the Xbox. Whether or not there is a pricing issue over both of these was not disclosed. The symbiotic relationship developed between Microsoft and nVidia is currently facing its biggest crisis to date and furthers the feeling of mistrust towards Microsoft from the markets.
How this plays out will be interesting and as ever, we will bring you step by step coverage.
Chief executive Jen-Hsun Huang stated, “We're delighted we have a wonderful relationship with Microsoft and are working on many fronts together and the arbitration is just a step in an overall process in resolving this thing. In the meantime we're recognising the difference between what Microsoft is paying and the price they believe they should be paying as deferred revenues.” He went on, “When all this gets resolved, my guess is it'll be a pretty dramatic positive impact on our business," Huang said on a conference call to discuss the new guidance. “All of our guidance we've given to you guys in the past is consistent with the conservative position we've taken with Xbox."
nVidia makes two key components that power the Xbox. Whether or not there is a pricing issue over both of these was not disclosed. The symbiotic relationship developed between Microsoft and nVidia is currently facing its biggest crisis to date and furthers the feeling of mistrust towards Microsoft from the markets.
How this plays out will be interesting and as ever, we will bring you step by step coverage.
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