NEWS - Tuesday, June 4, 2002


Nvidia’s Huang Comments On Xbox

Here’s what Jen-Husn Huang had to say about Nvidia’s chips for Microsoft Corp.’s Xbox video game console after Microsoft cut the U.S. price for the Xbox to $199 last month: "The price cuts for the Xbox will be good for demand. Microsoft has to stay competitive with (Sony Corp.’s) PlayStation 2. Microsoft makes money by selling software. We make money by selling chips. Their reduction in price for the Xbox will drive volume, but it shouldn’t have any impact on us." "Nvidia’s Xbox chips contribute 15 percent to total revenue and less than that to earnings." Nvidia is in a dispute with Microsoft about the price and quantity of processors made for the Xbox video-game console. Nvidia is the sole producer of graphics chips for the unprofitable Xbox. Microsoft has asked that the dispute be decided by an arbitrator.
Source: http://www.bloomberg.com/

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