ATI already won contract for next-gen XBOX?

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imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: bunnyfubbles
Originally posted by: Shaq
Originally posted by: bunnyfubbles
2012 is a long way off, there's no chance of seeing a 2.5+ year old 5800 in a new Xbox, we're looking at a minimum of a streamlined 7000 series caliber part. Yes, a 5800 would be overkill playing current 360 type games at 1080p, but that's the problem, a new system won't be just a resolution change. Crysis ultra high is still punishing the best hardware.

It depends on what DirectX or its equivalent will be out by then. If we are still on DX11 it won't need that much power. And a 5870 with a Crysis-level game that is written specifically for that hardware would run it just fine assuming they put a couple GB of RAM in it. Plus it's possible a $599 console would be hard to sell at that time if they use the latest tech. Would people prefer a $299 console that plays games like a high-end PC does now or a $599 console that will only look a little better? It depends which way MS/Sony goes this time. They may decide to change the console business model and actually make money on hardware like Nintendo has this generation. Of course we don't know that it will be 2012 anyway as that is what he speculated. There is a small chance it will be out next year.

seriously, 2012 is the date being thrown around here. Its 2009. It doesn't depend on anything except for GPU development cycles. Even if they go with a conservative GPU it would be at the worst the equivalent of the fastest 6000 series chip.

Anyone saying they'll go with something no more powerful than a 5000 series Radeon is just holding on to the lame justification that their super expensive gaming computer today will be just as powerful as a ~$299 console will be 2.5+ years from now.

Nintendo's Wii was a huge gamble, not many people remember or even realize it was their last gasp attempt to get them back in the game from a distant 3rd in the home console market. They couldn't afford to stay in the hardware arms race that Sony and Microsoft got bogged down in. Now that they've had a chance to really rake in the cash, I fully expect them to readdress the hardcore market they were pretty much forced to neglect.

Microsoft and Sony might change their tactics a little bit to mimic Nintendo's in order to expand their consumer base, but they won't stray from the hardcore base, it would be suicide to abandon it to go toe to toe with Nintendo.

No, it was not.
Nintendo made a profit on each Gamecube sold.
Research their annual reports before talking out your ass like that.

Microsoft gaming studios(Xbox div) has never made an annual profit AFAIK while Sony pretty much reports a loss/profit almost every other year.

Distant 3rd, distant 10th, distant XXX; who gives a crapshoot what place you are in the market if you're still making a profit while your #1 and 2 competitors are not?

As a shareholder I'm only concerned about profit which goes to their pocket(and mine too through dividends!), not what place/hardware performance rank/market share a particular company's product is.
 

ZimZum

Golden Member
Aug 2, 2001
1,281
0
76
Originally posted by: LotharMicrosoft gaming studios(Xbox div) has never made an annual profit AFAIK while Sony pretty much reports a loss/profit almost every other year.

Distant 3rd, distant 10th, distant XXX; who gives a crapshoot what place you are in the market if you're still making a profit while your #1 and 2 competitors are not?


Actually Microsoft Gaming division has been profitable since late 2007.

http://www.joystiq.com/2007/10...ns-profit-thanks-halo/

http://www.shacknews.com/onearticle.x/50957

http://www.electricpig.co.uk/2...revenues-overall-drop/


Sony has been a bit more uneven but they have had some profitable Quarters since 2008.
 

Malak

Lifer
Dec 4, 2004
14,696
2
0
Originally posted by: Rezist
I expect ATi to win the MS contract, I also expect the new MS console to probably have less of a GPU then a 5850 is right now. Is there any reason to get better when your stuck at 1920x1080?

We'll find out when some DX11 games get I guess.

The games are displayed at 1080, but they aren't 1080. They definitely do need more horsepower in the consoles to actually push that good of graphics, consoles are pretty far behind PC's now in that department.

I will never buy an MS console again though. I don't trust MS with hardware after the 360 failure.
 

bunnyfubbles

Lifer
Sep 3, 2001
12,248
3
0
Originally posted by: Lothar
Originally posted by: bunnyfubbles
Originally posted by: Shaq
Originally posted by: bunnyfubbles
2012 is a long way off, there's no chance of seeing a 2.5+ year old 5800 in a new Xbox, we're looking at a minimum of a streamlined 7000 series caliber part. Yes, a 5800 would be overkill playing current 360 type games at 1080p, but that's the problem, a new system won't be just a resolution change. Crysis ultra high is still punishing the best hardware.

It depends on what DirectX or its equivalent will be out by then. If we are still on DX11 it won't need that much power. And a 5870 with a Crysis-level game that is written specifically for that hardware would run it just fine assuming they put a couple GB of RAM in it. Plus it's possible a $599 console would be hard to sell at that time if they use the latest tech. Would people prefer a $299 console that plays games like a high-end PC does now or a $599 console that will only look a little better? It depends which way MS/Sony goes this time. They may decide to change the console business model and actually make money on hardware like Nintendo has this generation. Of course we don't know that it will be 2012 anyway as that is what he speculated. There is a small chance it will be out next year.

seriously, 2012 is the date being thrown around here. Its 2009. It doesn't depend on anything except for GPU development cycles. Even if they go with a conservative GPU it would be at the worst the equivalent of the fastest 6000 series chip.

Anyone saying they'll go with something no more powerful than a 5000 series Radeon is just holding on to the lame justification that their super expensive gaming computer today will be just as powerful as a ~$299 console will be 2.5+ years from now.

Nintendo's Wii was a huge gamble, not many people remember or even realize it was their last gasp attempt to get them back in the game from a distant 3rd in the home console market. They couldn't afford to stay in the hardware arms race that Sony and Microsoft got bogged down in. Now that they've had a chance to really rake in the cash, I fully expect them to readdress the hardcore market they were pretty much forced to neglect.

Microsoft and Sony might change their tactics a little bit to mimic Nintendo's in order to expand their consumer base, but they won't stray from the hardcore base, it would be suicide to abandon it to go toe to toe with Nintendo.

No, it was not.
Nintendo made a profit on each Gamecube sold.
Research their annual reports before talking out your ass like that.

Microsoft gaming studios(Xbox div) has never made an annual profit AFAIK while Sony pretty much reports a loss/profit almost every other year.

Distant 3rd, distant 10th, distant XXX; who gives a crapshoot what place you are in the market if you're still making a profit while your #1 and 2 competitors are not?

As a shareholder I'm only concerned about profit which goes to their pocket(and mine too through dividends!), not what place/hardware performance rank/market share a particular company's product is.

as a shareholder you're inclined to be biased and talk out of your own ass

Nintendo flat out admitted they were close to pulling out of the home console market and that they needed to turn things around with the Wii.

Nintendo is actually one of the largest software companies in the world, it doesn't matter if they're not bleeding money on their own hardware, dismal sales numbers for the hardware means they can't produce as much software.
 

mmnno

Senior member
Jan 24, 2008
381
0
0
Originally posted by: bunnyfubbles

Nintendo flat out admitted they were close to pulling out of the home console market and that they needed to turn things around with the Wii.

No, they flat out never said anything like that. They said that they would leave the home console market when they shut down the company, i.e. never if they could help it.

Nintendo was making money all along on GC hardware, and making more of it on software and handhelds. And then they launched the DS and the rest is history. It doesn't matter what they 'fail' on now, they'll be around forever to try again.

Also anyone who thinks Nintendo's next handheld will be a Tegra platform is out of their mind. The most they will do is go Sony's route and have Nvidia design a chip, but retain ownership and make it themselves. More likely, they will just use widely available off the shelf parts again.
 

bunnyfubbles

Lifer
Sep 3, 2001
12,248
3
0
Originally posted by: BenSkywalker
Nintendo's Wii was a huge gamble, not many people remember or even realize it was their last gasp attempt to get them back in the game from a distant 3rd in the home console market.

NGC beat the original XBox in global sales. The XBox only really did well in the US, it was rather weak in Europe and an abject failure in Japan. Oh yeah, NGC actually made tons of cash too, and the NDS is by far the most popular gaming system still. The Wii was a very bold move for Nintendo, but it certainly wasn't one of desperation.

Not sure where you got your numbers from, but wiki shows the GC @ 21.7 million and the XBox at 22 million (both world wide), compared to the 138+ million of the PS2 and it doesn't really matter where it placed, especially when put into perspective of 60+ million NES sold, 49 million SNES, 33 million N64, ~22 million GC...the declining trend was undeniable. And while wild success of their hand held units may have been (and still is) equally undeniable, it wouldn't make sense to keep a declining home console business afloat based on the success of the hand helds.
 

Bateluer

Lifer
Jun 23, 2001
27,730
8
0
Originally posted by: Ares202
Originally posted by: Vertibird
I hope Nvidia keeps the Sony Contract.

I remember reading they already said they were not, due to NV refusing to lower the price on the RSX

they are going to ask IBM i think, as they are already building CPU's for the PSP and PS3

ATI should make a bid for the Sony contract too.
 

dflynchimp

Senior member
Apr 11, 2007
468
0
71
Originally posted by: Bateluer
Originally posted by: Ares202
Originally posted by: Vertibird
I hope Nvidia keeps the Sony Contract.

I remember reading they already said they were not, due to NV refusing to lower the price on the RSX

they are going to ask IBM i think, as they are already building CPU's for the PSP and PS3

ATI should make a bid for the Sony contract too.

Technically Sony never bought Nvidia chips for its systems, just the IP's. And I have a feeling that is the way Sony rolls. They like to develop their own systems in-house. This gives them greater control over the entire process. I highly doubt ATI and Sony would ever come to an agreement or even for Sony to have any sort of bidding competition for the PS4.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: bunnyfubbles
Originally posted by: Lothar
Originally posted by: bunnyfubbles
Originally posted by: Shaq
Originally posted by: bunnyfubbles
2012 is a long way off, there's no chance of seeing a 2.5+ year old 5800 in a new Xbox, we're looking at a minimum of a streamlined 7000 series caliber part. Yes, a 5800 would be overkill playing current 360 type games at 1080p, but that's the problem, a new system won't be just a resolution change. Crysis ultra high is still punishing the best hardware.

It depends on what DirectX or its equivalent will be out by then. If we are still on DX11 it won't need that much power. And a 5870 with a Crysis-level game that is written specifically for that hardware would run it just fine assuming they put a couple GB of RAM in it. Plus it's possible a $599 console would be hard to sell at that time if they use the latest tech. Would people prefer a $299 console that plays games like a high-end PC does now or a $599 console that will only look a little better? It depends which way MS/Sony goes this time. They may decide to change the console business model and actually make money on hardware like Nintendo has this generation. Of course we don't know that it will be 2012 anyway as that is what he speculated. There is a small chance it will be out next year.

seriously, 2012 is the date being thrown around here. Its 2009. It doesn't depend on anything except for GPU development cycles. Even if they go with a conservative GPU it would be at the worst the equivalent of the fastest 6000 series chip.

Anyone saying they'll go with something no more powerful than a 5000 series Radeon is just holding on to the lame justification that their super expensive gaming computer today will be just as powerful as a ~$299 console will be 2.5+ years from now.

Nintendo's Wii was a huge gamble, not many people remember or even realize it was their last gasp attempt to get them back in the game from a distant 3rd in the home console market. They couldn't afford to stay in the hardware arms race that Sony and Microsoft got bogged down in. Now that they've had a chance to really rake in the cash, I fully expect them to readdress the hardcore market they were pretty much forced to neglect.

Microsoft and Sony might change their tactics a little bit to mimic Nintendo's in order to expand their consumer base, but they won't stray from the hardcore base, it would be suicide to abandon it to go toe to toe with Nintendo.

No, it was not.
Nintendo made a profit on each Gamecube sold.
Research their annual reports before talking out your ass like that.

Microsoft gaming studios(Xbox div) has never made an annual profit AFAIK while Sony pretty much reports a loss/profit almost every other year.

Distant 3rd, distant 10th, distant XXX; who gives a crapshoot what place you are in the market if you're still making a profit while your #1 and 2 competitors are not?

As a shareholder I'm only concerned about profit which goes to their pocket(and mine too through dividends!), not what place/hardware performance rank/market share a particular company's product is.

as a shareholder you're inclined to be biased and talk out of your own ass

Nintendo flat out admitted they were close to pulling out of the home console market and that they needed to turn things around with the Wii.

Nintendo is actually one of the largest software companies in the world, it doesn't matter if they're not bleeding money on their own hardware, dismal sales numbers for the hardware means they can't produce as much software.

As a shareholder, I only pay attention to numbers.
I don't pay much attention to unfounded rumors and speculation such as yours or others being spouted over the internet.

I call bullshit on that. Prove it.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: bunnyfubbles
Originally posted by: BenSkywalker
Nintendo's Wii was a huge gamble, not many people remember or even realize it was their last gasp attempt to get them back in the game from a distant 3rd in the home console market.

NGC beat the original XBox in global sales. The XBox only really did well in the US, it was rather weak in Europe and an abject failure in Japan. Oh yeah, NGC actually made tons of cash too, and the NDS is by far the most popular gaming system still. The Wii was a very bold move for Nintendo, but it certainly wasn't one of desperation.

Not sure where you got your numbers from, but wiki shows the GC @ 21.7 million and the XBox at 22 million (both world wide), compared to the 138+ million of the PS2 and it doesn't really matter where it placed, especially when put into perspective of 60+ million NES sold, 49 million SNES, 33 million N64, ~22 million GC...the declining trend was undeniable. And while wild success of their hand held units may have been (and still is) equally undeniable, it wouldn't make sense to keep a declining home console business afloat based on the success of the hand helds.

Their console division still reported an annual profit throughout the entire Gamecube era. Why would they want to close it when they are reporting a profit?
You make it seem like their Gamecube division was producing losses for the company and dragging the company down, while the company was only surviving due to handheld sales when that was not the case.
 

RobertR1

Golden Member
Oct 22, 2004
1,113
1
81
Originally posted by: BenSkywalker


KK is gone, the PS4 will almost certainly be an evolution of the PS3. We will not be seeing anymore hyper exotic ideas for that platform for a while, you can bank on that.

Then they can kiss that backwards compatiability goodbye.....
 

akugami

Diamond Member
Feb 14, 2005
5,837
2,101
136
Originally posted by: mmnno
Originally posted by: bunnyfubbles

Nintendo flat out admitted they were close to pulling out of the home console market and that they needed to turn things around with the Wii.

No, they flat out never said anything like that. They said that they would leave the home console market when they shut down the company, i.e. never if they could help it.

Nintendo was making money all along on GC hardware, and making more of it on software and handhelds. And then they launched the DS and the rest is history. It doesn't matter what they 'fail' on now, they'll be around forever to try again.

Also anyone who thinks Nintendo's next handheld will be a Tegra platform is out of their mind. The most they will do is go Sony's route and have Nvidia design a chip, but retain ownership and make it themselves. More likely, they will just use widely available off the shelf parts again.

Nintendo's Wii was a huge gamble, that part I agree with. However, one has to remember that Nintendo has almost never met a console it didn't make a profit off of. The lone exception being the Virtual Boy. The Wii, even if it failed, would definitely not have been Nintendo's last console. Nintendo has a huge stockpile of cash. And that was before the success of the Wii.

I am pretty console agnostic and my brother has a Xbox 360. I've got a PS3 and a Wii. People, like bunnyfubbles, forget that it wasn't Nintendo predicting doom and gloom for itself, though it would be foolish to say that upper management at Nintendo wasn't at least concerned about falling revenues and profits.

It was the mainstream media and analysts who looked at the falling revenues and predicted Nintendo was doomed. There were even gaming blogs and articles in gaming mags that pointed out this fact, to no avail. Nintendo was doomed after all.

I wouldn't say it is impossible that Nintendo's next portable system is Tegra based. Nintendo would have to have a very cost competitive system and I think that backwards compatibility with DS games is a huge must. I think they won't worry about GBA compatibility.
 

imported_Lothar

Diamond Member
Aug 10, 2006
4,559
1
0
Originally posted by: akugami
Originally posted by: mmnno
Originally posted by: bunnyfubbles

Nintendo flat out admitted they were close to pulling out of the home console market and that they needed to turn things around with the Wii.

No, they flat out never said anything like that. They said that they would leave the home console market when they shut down the company, i.e. never if they could help it.

Nintendo was making money all along on GC hardware, and making more of it on software and handhelds. And then they launched the DS and the rest is history. It doesn't matter what they 'fail' on now, they'll be around forever to try again.

Also anyone who thinks Nintendo's next handheld will be a Tegra platform is out of their mind. The most they will do is go Sony's route and have Nvidia design a chip, but retain ownership and make it themselves. More likely, they will just use widely available off the shelf parts again.

Nintendo's Wii was a huge gamble, that part I agree with. However, one has to remember that Nintendo has almost never met a console it didn't make a profit off of. The lone exception being the Virtual Boy. The Wii, even if it failed, would definitely not have been Nintendo's last console. Nintendo has a huge stockpile of cash. And that was before the success of the Wii.

I am pretty console agnostic and my brother has a Xbox 360. I've got a PS3 and a Wii. People, like bunnyfubbles, forget that it wasn't Nintendo predicting doom and gloom for itself, though it would be foolish to say that upper management at Nintendo wasn't at least concerned about falling revenues and profits.

It was the mainstream media and analysts who looked at the falling revenues and predicted Nintendo was doomed. There were even gaming blogs and articles in gaming mags that pointed out this fact, to no avail. Nintendo was doomed after all.

I wouldn't say it is impossible that Nintendo's next portable system is Tegra based. Nintendo would have to have a very cost competitive system and I think that backwards compatibility with DS games is a huge must. I think they won't worry about GBA compatibility.

There is a difference between saying "management was concerned about falling revenues/profits" VS. "they admitted they almost pulled out"

Are the management at Intel concerned about the falling profits they reported yesterday? Sure they are.
Are they thinking about pulling out of the X86 market? Of course not because they're still reporting a profit!

I wouldn't really say the Wii was a huge gamble. I think the $250 price point vs. $350-400+ for Xbox360/PS3 had more to do with it's success than the image of a bunch of people waving a controller stupidly.
 

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
Make sense. It takes about two years to make a console doesn't it? That would put the next gen's arrival date @ 2012. Two years is a long time. We will be at 2 generations past the 58xx by then.

I don't expect the next gen consoles to be very amazing in terms of power or graphics. I think there is a trend within the industry away from loss leading consoles. And it seems like graphics are reaching a new plateau where they are "good enough" for the general consumer.

So I expect a part that will not be revolutionary but will be very derivative of similar parts from the PC world in order to reduce costs. Something like a 5770 + 2generations + edram. The cpu will probably be a regular quadcore. Maybe around 2GB of ram? I expect a bigger HD though to handle lots more video streaming applications.
 

BenSkywalker

Diamond Member
Oct 9, 1999
9,140
67
91
Then they can kiss that backwards compatiability goodbye.....

Not at all. While the original PS3 design was exotic at the time, using an evolution of it after it moves 50Million+ units isn't the same. Sony owns the Cell IP, licensing a GPU from nVidia gives them BC and reduces engineering costs by a huge amount, if they outsorce chip production instead of building a new fab the initial start up costs for the PS4 would be a small fraction of the cost they faced when working on the PS3. It seems the logical choice for Sony is to go with a higher power Cell+nV GPU for the PS4(along with likely ~8GB of RAM, 8-16x BRD and a TBish HD). What CPU MS is going to move to should be interesting, perhaps a Cell variant? Should be cheaper then paying to get an updated version of their current CPU, going with another ATi GPU w/eDRAM just makes sense for them from both a cost to develop angle or a BC one.

Not sure where you got your numbers from, but wiki shows the GC @ 21.7 million and the XBox at 22 million

My numbers show the Xbox at just a but under 21Million units.

And while wild success of their hand held units may have been (and still is) equally undeniable, it wouldn't make sense to keep a declining home console business afloat based on the success of the hand helds.

Their console division was still making a profit, a rather large one too. Unlike most of the other systems, Nintendo not only makes money on the hardware, they make tons of money on the software. If we go back to 2005, the year before the Wii launched, Nintendo sold 27.2Million units of software, MS games studio less then 4Million. Nintendo was extremely profitable prior to the Wii- both its' hardware and software had made them extremely large sums of money. Why would any company consider leaving a market they were making huge gains in when it came to profits? It makes almost no sense.

Also anyone who thinks Nintendo's next handheld will be a Tegra platform is out of their mind.

Tegra is off the shelf and quite cheap, how would it be a bad solution? In the handheld space as of right now, it seems to me that Tegra is far beyond anything else by a healthy margin.

It takes about two years to make a console doesn't it?

Depends on the complexity, PS3 took about twice that long to develop and they still never met the initial design goals(which they would have failed with, Cell is a killer vector processor, but not strong enough to best a GPU).

I think there is a trend within the industry away from loss leading consoles.

Huh? The PS3 and 360 set new records for loss leading, by rather huge amounts too. The Wii isn't a loss leader, but Nintendo has never really used that approach.

So I expect a part that will not be revolutionary but will be very derivative of similar parts from the PC world in order to reduce costs. Something like a 5770 + 2generations + edram. The cpu will probably be a regular quadcore.

They won't downgrade their CPUs, not a chance. The PC space is a bad place to get a CPU for a gaming console, very poor actually. The costs are actually too high and the performance versus what is needed is far too low. This is why every succesful console ever has used something other then a x86 based chip(no, I don't consider the original XBox to be remotely successful).

Maybe around 2GB of ram?

Fairly safe bet it will be at least 8GB of RAM. PCs are actually falling behind in terms of the size of games when compared to console exclusives(from an assets perspective). The amount of content the larger budgets allow create a lot of oppurtunity for more complex assets.
 

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
Originally posted by: BenSkywalker.

So I expect a part that will not be revolutionary but will be very derivative of similar parts from the PC world in order to reduce costs. Something like a 5770 + 2generations + edram. The cpu will probably be a regular quadcore.

They won't downgrade their CPUs, not a chance. The PC space is a bad place to get a CPU for a gaming console, very poor actually. The costs are actually too high and the performance versus what is needed is far too low. This is why every succesful console ever has used something other then a x86 based chip(no, I don't consider the original XBox to be remotely successful).
I meant a power quadcore derivative of some kind.
 

imported_Shaq

Senior member
Sep 24, 2004
731
0
0
Seven years is a bit too long to stay on one console. Hardware has come such a long way in the last five years, especially on the GPU side, that they should release a new one before that. And MS/Sony can still release games for the current consoles for another two-three years. A quad core and a 5770 with 2GB of RAM would totally blow away what they have now and would be cheap to produce and should be backwards compatible. How many years did DX9 reign? 6-7 years? DX10 has been around for 4 years already. DX11 should last another 4 years. It looks like DX11 actually improves performance at this point (Battleforge). So another 300% performance by waiting 2 more years and doubling the price of the console doesn't seem the best strategy to me. A 5770 is about 8 times faster than the 360 GPU. Is the 360 GPU 8X faster than the original Xbox GPU?
 

BenSkywalker

Diamond Member
Oct 9, 1999
9,140
67
91
I meant a power quadcore derivative of some kind.

That could work for the 360, although they would be surrendering on that front to Sony again. That may be the way they decide to go, but I would think they would be looking for something with a bit more flexibility then that.

Seven years is a bit too long to stay on one console.

From a business perspective, you go as long as you reasonably can. Given that consoles work on an accelerated sales rate until the end of their life cycle, it makes absolutely no sense to push something out too early. Licensing revenue is still increasing at a very sharp rate, we are closing in on the point where the loss leading consoles start to make their money back and then turn a profit, it is far too early to disrupt that from a business perspective.

Hardware has come such a long way in the last five years, especially on the GPU side, that they should release a new one before that.

Five years ago none of the current consoles were out, actually as of right now four years ago none of the consoles were out.

A quad core and a 5770 with 2GB of RAM would totally blow away what they have now and would be cheap to produce and should be backwards compatible.

It would be a marginal improvement at best. Normally console generations tend to be in the order of magnitude increase in power, not 2x or 3x.

How many years did DX9 reign? 6-7 years? DX10 has been around for 4 years already.

10 years ago we were just starting to ramp up for DX7. I think you are condensing time a bit

A 5770 is about 8 times faster than the 360 GPU. Is the 360 GPU 8X faster than the original Xbox GPU?

The XBox model has been an adject failure to date, they learned their lesson on the first one and realized they had to be more 'Sony like' in order to make a profit. Because of this, they will not repeat all of the mistakes they made with the first XBox, like it having way too short of a lifespan. This year the PS2 has sold 3.5Million consoles, the 360 6Million. The PS2 this year has generated ~$200Million in licensing revenue for Sony. This is the model that MS wants to use, make a platform that is still raking in cash 10 years from its launch. It is a good business model.

If you push out the XBox720 now all of your early adopters are going to abandon the 360, development funds are going to be divided amongst your platforms and all potential licensing revenue that you could have earned off of the 360 from those people will instead be used to offset R&D on another generation of consoles. Waiting another two years you will still get their money, but you will do so with more powerful hardware and you would have reduced the R&D budget on new hardware by a considerable amount. One new console every 7 years versus one every 4 can easily be the difference between being wildly profitable and losing billions each generation. No company wants to continue losing money in any market, not even MS. They will go at least 6 years on this cycle, probably 7, and try and emulate Sony's business model for the PS2- it is very hard to argue with that level of success(as strong as the Wii has been this generation, it has a very long way to go to prove it is comparable to the PS2 for revenue generation).
 

Wreckage

Banned
Jul 1, 2005
5,529
0
0
The DS is a huge win for NVIDIA as there is no money in the large consoles for GPU makers anymore.
 

akugami

Diamond Member
Feb 14, 2005
5,837
2,101
136
Originally posted by: Wreckage
The DS is a huge win for NVIDIA as there is no money in the large consoles for GPU makers anymore.

First, it is a rumor that nVidia has the contract for the new Nintendo portable system. Let me repeat that. It is a rumor that nVidia has the contract for the new Nintendo portable system. Nothing is set in stone until Nintendo announces it.

Second, there is money to be made in selling GPU's for set top consoles or else nVidia and ATI wouldn't be fighting to get those contracts. Even if it's not a huge profit, they still make money on it. You just won't see the unfavorable contract situation as was the case between MS and nVidia on the original Xbox.

Heck, there is probably less money to be made on a portable system since, as we've seen, the prices on average are lower for portable systems. Nintendo is also very cost conscious so if they do contract a Tegra based system from nVidia don't expect them to pay a whole lot.

Any contract win should bring money to the GPU makers. How much is something that is hard to say since each situation is unique.
 

Wreckage

Banned
Jul 1, 2005
5,529
0
0
Originally posted by: akugami


First, it is a rumor that nVidia has the contract for the new Nintendo portable system. Let me repeat that. It is a rumor that nVidia has the contract for the new Nintendo portable system. Nothing is set in stone until Nintendo announces it.
I see so Microsoft officialy announced the next Xbox will have an ATI GPU?

Second, there is money to be made in selling GPU's for set top consoles or else nVidia and ATI wouldn't be fighting to get those contracts. Even if it's not a huge profit, they still make money on it. You just won't see the unfavorable contract situation as was the case between MS and nVidia on the original Xbox.
They no longer sell GPUs to the console makers they sell a design to them.
Heck, there is probably less money to be made on a portable system since, as we've seen, the prices on average are lower for portable systems. Nintendo is also very cost conscious so if they do contract a Tegra based system from nVidia don't expect them to pay a whole lot.
It's the volume where the money is at. Look how many portable systems Nintendo sells. This would be a huge amount of money.


 

ZimZum

Golden Member
Aug 2, 2001
1,281
0
76
Originally posted by: Wreckage

They no longer sell GPUs to the console makers they sell a design to them.

ATI actually makes the Hollywood chips inside the Wii. They shipped the 50 milllionth chip to Nintendo back in March. Even the contracts where ATI/Nvidia dont produce chips still generate a lot of revenue. They get paid royalties on every console sold.

 

akugami

Diamond Member
Feb 14, 2005
5,837
2,101
136
Originally posted by: Wreckage
Originally posted by: akugami


First, it is a rumor that nVidia has the contract for the new Nintendo portable system. Let me repeat that. It is a rumor that nVidia has the contract for the new Nintendo portable system. Nothing is set in stone until Nintendo announces it.
I see so Microsoft officialy announced the next Xbox will have an ATI GPU?

I didn't call it an official announcement for ATI winning the next Xbox contract nor is it set in stone. In fact, anyone who is in this thread should be smart enough to know it's speculations and rumors. A reader would have to be blind and stupid not to notice the question mark on the topic title and the source of the information.

Second, there is money to be made in selling GPU's for set top consoles or else nVidia and ATI wouldn't be fighting to get those contracts. Even if it's not a huge profit, they still make money on it. You just won't see the unfavorable contract situation as was the case between MS and nVidia on the original Xbox.
They no longer sell GPUs to the console makers they sell a design to them.

I'm assuming the "they" you are talking about is nVidia and not ATI. nVidia licenses IP to Sony. Someone would have to assume nVidia is stupid enough to not be making money from the deal. So are you saying nVidia is stupid and not making money from the Sony deal?

Heck, there is probably less money to be made on a portable system since, as we've seen, the prices on average are lower for portable systems. Nintendo is also very cost conscious so if they do contract a Tegra based system from nVidia don't expect them to pay a whole lot.
It's the volume where the money is at. Look how many portable systems Nintendo sells. This would be a huge amount of money.

That's not what you said. You said, and I quote "The DS is a huge win for NVIDIA as there is no money in the large consoles for GPU makers anymore." The relevant part is bolded. What you said is there is no money to be made for the GPU makers in set top consoles.
 
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