May 13, 2005
Nvidia Ends Xbox 1 Chip Shipments
Nvidia said on their earnings conference call yesterday that it was stopping Xbox 1 graphic chip shipments in the current quarter (ending August 1st) as Microsoft focuses on the Xbox 360, which uses ATI graphics technology. This fans the flames that the Xbox 360 may NOT be backwards compatible as Microsoft would have to pay Nvidia for Xbox 1 graphics chip hardware. I guess it is possible they can emulate it using software, but that method is a lot more difficult.
It also looks like the current Xbox 1 will be put out to pasture when the Xbox 360 is released. Unlike traditional console cycles, Microsoft isn't able to bring down the cost of the first Xbox due to bad contract negotiation. Instead of paying a royalty based on the price of the console and semiconductor cost reductions, Nvidia was able to lock in a fixed price for the chips. Maybe that is why the creator of the Xbox now works for the near bankrupt Infinium Labs, creator of the Phantom console. So Phantom, that is hasn't been released yet. [Discuss]
