nVidia and Microsoft's relationship over Xbox one was famously rocky. Disappointment by initially mediocre sales, nVidia weren't making their R+D spend back quickly enough. Eager to make Xbox a more attractive proposition, Microsoft were angling for discounts on the GPU chips. So no-one was surprised when the two companies parted ways, and ATI stepped in to supply technology to Xbox 2. But it's unlikely that nVidia will wish to step out of the console war altogether. This is borne out by
reports from CNN of a possible way forward for nVidia and Sony for the PS3.
CNN reports that, "The reality is nVidia is not sitting in a vacuum," said Erach Desai, an analyst with American Technology Research, "They are in discussions with Sony for the PS3."
Understandably, neither company has confirmed anything, and it is likely that there is nothing to confirm at this stage. But the relationship would make sense for Sony. The PS2 was less powerful, graphically, than Xbox and Gamecube. That's not a situation Sony will wish to find itself in for the next round of the console war, which will find the machines becoming increasingly mainstream as features like video timeshifting and recording and MP3 playback are added.
From Sony's point of view, outsourcing GPU development would enable them to dedicate more time to the development of its 'Cell' processor, it would make sense to outsource development of the graphics processor, especially if the machine is to launch at a similar time to that of the competition. nVidia is the acknowledged leader in graphics processor technology.
As always, we will bother all parties concerned to find out more.