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NVidia passed on providing console GPUs due to purchase price, opportunity cost

It'll be interesting to see if next-gen games on PC will run better on Radeon hardware since they'll be designed to run on consoles also.
 

Triple U

Banned
I mean if two companies, in two consecutive generations leave you for the competitor then maybe you are not worth the cost, Nvidia.
 
salt-shaker_300.jpg

Oh may I have some fries from nVidia with all the salt dear sir or madam? :D Seriously though I never understood what the point of this "intelligent negative PR" towards the competitor should do when it's really obvious why they (nVidia) are making this statement o.o
 

GeekyDad

Member
In spite of all the ridiculous replies in this thread, their comments seem perfectly reasonable to me. Companies don't make their money based on emotional decision making, and any suggestion otherwise is fucking stupid.
 

jagowar

Member
Nvidia better hope that tegra market really takes off because I think you are going to see AMD take over desktop graphics. With both major consoles running AMD graphics and being on the PC I have a feeling most developers are going to optimize around that going forward.
 
Well he wouldn't be wrong, that's how all bidding goes. If it was worth it to them, from a business perspective, to take the price AMD were willing to take, then they would have done it.

It sounds like sour grapes and probably is, at least to an extent, but what he's talking about isn't a bold faced lie or anything. How else do you lose a bidding war except by deciding "okay, we're not willing to go that low, we're out."

exactly. AMD's low bid was not worth undercutting to Nvidia.
 

surly

Banned
In spite of all the ridiculous replies in this thread, their comments seem perfectly reasonable to me. Companies don't make their money based on emotional decision making, and any suggestion otherwise is fucking stupid.
lol, exactly.
 

nbthedude

Member
Only in the console space buckaroo.

In the PC space NVIDIA's hailed as the saviour of PC gaming.

PCGAF recommends NVIDIA's cards over AMD's cards all the time.

DriverGAF prefers NVIDIA's drivers to AMD's drivers.

Bleeding Edge GAF buys NVIDIA Titans up the ass.

And so on, and so forth.

That is a very overly simplistic portrait.

Two years ago you may have been closer to right, but I would say AMD usually gets recommended now days except for bleeding edge rigs. Even top end rigs do very well with AMD Radeon 7970s. AMD has gained a lot of ground with PC gamers in recent years due to competitive pricing and improvements in their drivers.

And for the record, I have a media PC and a desktop. One with AMD and one Nvidia.
 
Yup. But I guess replying "lol salty" is easier than using your brain, if this thread is anything to go by.

What is weird about it is not that Nvidia isn't making console hardware, but rather than manner in which the comments were made. The business realities may be such that Nvidia is making a lot more money not doing anything with consoles.

But this whole, hypothetical negotiation talk is just strange. "Hypothetically, I'm sure we had a conversation, and I'm sure during that conversation we shut down the console manufacturers because we don't like their margins and we're beyond that business model." What? Why say that at all? It just sounds like they're trying to paint the console makers as the bad guys, which makes sense given that it isn't their market, but sounds combative. That's where the "salt" is coming from.

Nvidia may well be making the best business decisions possible, but following your business decision with a slap at past business partners or potential future business partners is going to incite some ire.
 
Fuck me drunk.

Nvidia don't give a fuck about consoles kids. They are killing it in the mobile market, which unlike consoles is a growth industry. Applying immature forum logic to the decisions of profit motivated corporate entities is just pathetic.

AMD by comparison have consistently failed to land embedded contracts for a decade and were hungrier. That is the story here, any salt is imagined.
 
Sounds like they turned Sony down tho.

No matter who turned who down. This generally tends to be a back and forth in which Sony probably asked Nividia how much they would charge them and Sony said "hell no" when they saw the numbers and a counter offer was made by Sony and Nividia said "hell no" when they saw the numbers.

Why pay more for something you can get for less. Reminds me of all those Sony vioas computers that are exorbitant and i can get alot more from a cheaper gateway computer lol
 

Zimbardo

Member
AMD will be hoping that its PS4 business pays off, having recently fallen on hard times. Earlier this week it sold its Austin-based HQ for $164 million to raise cash, while a leading analyst called it "un-investable" following an operating loss of $131 million in its quarterly earnings report.

In Nvidia's latest earnings call, the company posted a profit of $174 million.
http://www.gamespot.com/news/ps4-not-worth-the-cost-says-nvidia-6405300

yeah, i think AMD need all the help they can get. Nvidia are doing well and surely don't need anything in the console space.
 

Isaccard

Member
Fuck me drunk.

Nvidia don't give a fuck about consoles kids. They are killing it in the mobile market, which unlike consoles is a growth industry. Applying immature forum logic to the decisions of profit motivated corporate entities is just pathetic.

AMD by comparison have consistently failed to land embedded contracts for a decade and were hungrier. That is the story here, any salt is imagined.

"nvidia is so salty!! consoles!!" :lol :lol
 
These consoles went with APUs, so that naturally makes AMD a better partner. Well that and AMD is obviously willing to give better margins/pricing due their financial situation, which Nvidia sort of gloats about here.

What is weird about it is not that Nvidia isn't making console hardware, but rather than manner in which the comments were made. The business realities may be such that Nvidia is making a lot more money not doing anything with consoles.

But this whole, hypothetical negotiation talk is just strange. "Hypothetically, I'm sure we had a conversation, and I'm sure during that conversation we shut down the console manufacturers because we don't like their margins and we're beyond that business model." What? Why say that at all? It just sounds like they're trying to paint the console makers as the bad guys, which makes sense given that it isn't their market, but sounds combative. That's where the "salt" is coming from.

Nvidia may well be making the best business decisions possible, but following your business decision with a slap at past business partners or potential future business partners is going to incite some ire.

The article doesn't give any context to this statement, so this is more of a problem with the article than anything else.
 

GavinGT

Banned
It'll be interesting to see if next-gen games on PC will run better on Radeon hardware since they'll be designed to run on consoles also.

Xbox 360 has been the lead platform for the majority of games this generation, but you don't see ATI/AMD graphics cards having any discernible edge when it comes to PC ports.
 
Didn't Nvid comletely screw MS over with the xbox?
Aren't there rumors (or backed up fact) that the company tried to pull some shady shit with Sony or Nintendo too?

Maybe it isn't so much that they got turned down, but the console makers don't want to do business wiyh a partner that actively tries to screw them?
 

diamount

Banned
Nvidia salty as fuck that they got left out.

That is probably a factor but it's likely the mobile market would make them more money anyhow if they even did do a deal with Sony/Microsoft. AMD probably gave them a killer deal also since they are so desperate for money.
 

spwolf

Member
Sounds like they turned Sony down tho.

supplier doesnt turn down the buyer, it is other way around... they got run over by AMD. I dont think they had a chance no matter what the price as they have no way to provide the APU.

I doubt Nvidia was ever seriously in running as they simply dont have the technology.
AMD will certainly profit from 100m orders over the next few years, it might get back to track.

It was only 2-3 years ago when people predicted death of Nvidia and rule of AMD... look how that turned out :).

AMD has a good chance with their new APU's to win some of the market share back...
 

mrklaw

MrArseFace
didn't want to do business at the price they were willing to pay?

The price being presumably larger than 0 which is what they're getting for it now?

Its not like they are fabbing the chips right - AMD are just producing the specs and they'll be produced under license most likely. So once the design is done (probably a fairly expensive exercise that will have been funded by MS/Sony), they just sit back and wait for the license fees to roll in.
 

Zeth

Member
Salt? I don't know about that. NVidia is already branched out into the rapidly growing mobile business, and have quite a lot going on elsewhere in the supercomputer/desktop world. AMD's financial woes almost certainly created a situation where AMD was bound to underbid/ be eager to work for Sony/MS.
 

Mudkips

Banned
ITT: People don't realize how badly AMD needs money

AMD's financial situation doesn't change the fact that they won all 3 next gen console contracts and Nvidia didn't. AMD's financial situation will be improved by this while Nvidia missed out. The margins may not have seemed worth it to Nvidia at the time, but they sure seem salty about it now.
 
Jokes aside, lets analyze this shit.

Nvidia is owning the mobile market. They are owning the PC market. They are essentially controlling a market with products that sell in billions compared to console market.

At this stage, every company is looking at the "next big thing". PS4, Nextbox, WiiU, Shield, Tablets, Phones and more. Sony, Microsoft and Nintendo are not in the era where consoles can cost $599 anymore. It's not worth it especially when there really isn't any need to jump to next-gen as games are simultaneously releasing for current and next-gen consoles by Q4 for atleast a year or two.

With the lead time that the companies provided and the cost they are looking for, Nvidia isn't seeing any major profit when compared to their other market. AMD, however, is in a stage where they are in dire need of any long-term contract so they can make a comeback. They agreed to all the stipulations set by Sony, Microsoft and Nintendo to ensure the big 3's consoles are all powered by their product.

Long story short: Nvidia's future is pretty secure as long as they keep dominating the mobile market. AMD's future is pretty secure as long as they keep dominating the console market.
 

GavinGT

Banned
I don't interpret this as Nvidia being upset that they didn't get the contracts. If they had been willing to accept slimmer profit margins than AMD, they would have won the contracts. But they looked at what else they could do with their assets and decided there was more money to be made elsewhere.

And with AMD in bad shape, it makes sense that they would sign on for a deal yielding low profit margins but guaranteed money in the bank.
 

PSGames

Junior Member
After the GPU in PS3 was considered a weak link, I wouldn't be so easy to come back to nvidia as well. Got their GPU's on desktop but it seems like consoles are better with AMD parts. Or at least AMD seems to be doing some things right to secure contracts with all 3 console manufacturers.

Well for one AMD can provide the CPU and GPU which would obviously be preferable to whatever Nvidia can come up with.
 

nbthedude

Member
What is weird about it is not that Nvidia isn't making console hardware, but rather than manner in which the comments were made. The business realities may be such that Nvidia is making a lot more money not doing anything with consoles.

But this whole, hypothetical negotiation talk is just strange. "Hypothetically, I'm sure we had a conversation, and I'm sure during that conversation we shut down the console manufacturers because we don't like their margins and we're beyond that business model." What? Why say that at all? It just sounds like they're trying to paint the console makers as the bad guys, which makes sense given that it isn't their market, but sounds combative. That's where the "salt" is coming from.

Nvidia may well be making the best business decisions possible, but following your business decision with a slap at past business partners or potential future business partners is going to incite some ire.

Agreed. Nobody is arguing that Nvidia isn't sitting pretty, which just makes it strange that they would even feel the desire to comment on contracts they didn't need.

I think those who think the comments aren't bitter are falsely assuming that just because they didnt need the contracts there is no way they cold be bitter.
 
The article doesn't give any context to this statement, so this is more of a problem with the article than anything else.

That may well be. Could have been someone doggedly asking an Nvidia employee about a question they didn't actually know anything about, ergo leading to "Here's how I imagine it." I'm just going by what is written.

Just to be clear, I don't think this is some kind of grievous wrong. It was an employee reading a situation from their point of view, just as I'm sure someone at AMD would make comments that made it clear they felt consoles really supported their business model. The anger apparent on both sides in this forum is kind of crazy given the scenario.
 
AMD's financial situation doesn't change the fact that they won all 3 next gen console contracts and Nvidia didn't. AMD's financial situation will be improved by this while Nvidia missed out. The margins may not have seemed worth it to Nvidia at the time, but they sure seem salty about it now.

AMD won 2/3 of this gen console contracts too and yet the past 5 years have been the worst in the company history ever.
 
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