In a move that will no doubt pour gasoline on the fiery arguments raging between nVidia and Microsoft, Focus Enhancements has announced that it has struck a deal to supply a new graphics chip for the Xbox.
The new chip will handle the conversion of the console’s signal into a format acceptable to the humble television set.
The move is designed to bring down the Xbox’s lofty production costs which at the moment run to around $350 per unit.
It is likely that, given the current rift between Microsoft and nVidia over payment and pricing for the machine’s core graphics components, compounded by nVidia's recent $7 million stock write-off following slow Xbox sales, that nVidia did not pitch for the work.
"The chip going into the Xbox is designed to give Microsoft a competitive advantage," said Tom Hamilton, executive vice president of Focus Enhancements.
It is also widely expected that Benq, a Taiwanese developer and manufacturer of DVD drives, will announce a new DVD component for the Xbox in the coming weeks.
The new chip will handle the conversion of the console’s signal into a format acceptable to the humble television set.
The move is designed to bring down the Xbox’s lofty production costs which at the moment run to around $350 per unit.
It is likely that, given the current rift between Microsoft and nVidia over payment and pricing for the machine’s core graphics components, compounded by nVidia's recent $7 million stock write-off following slow Xbox sales, that nVidia did not pitch for the work.
"The chip going into the Xbox is designed to give Microsoft a competitive advantage," said Tom Hamilton, executive vice president of Focus Enhancements.
It is also widely expected that Benq, a Taiwanese developer and manufacturer of DVD drives, will announce a new DVD component for the Xbox in the coming weeks.
Companies:
Microsoft
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