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Microsoft and Nvidia end chip price dispute


Nvidia announced today that the company and Microsoft have settled all issues related to pricing of the Microsoft Xbox graphics, audio and networking chip and have ended the arguement between them.

In addition to resolving this pricing dispute, the two companies have agreed to work together on future cost reductions for the Xbox. Nvidia first announced the pricing dispute in May 2002 and said the argument could either bring additional revenue or force the company to sell some chips at a loss. The Xbox accounts for 15-20% of Nvidia’s revenue.

“This is a win for both companies, and we couldn’t be more delighted with the results,” said Jen-Hsun Huang, president and CEO at NVIDIA. “NVIDIA and Microsoft can now take our partnership to the next level and focus our substantial resources to maximize the full potential of Xbox game console.”

“With the arbitration resolved, we look forward to continuing the partnership between Microsoft and NVIDIA and turning our focus to building on the great success of the Xbox platform,” stated Robbie Bach, senior vice president of Microsoft and Chief Xbox Officer.

The author of this fine article

is the Editor at Thunderbolt, having joined in November 2000. Get in touch on Twitter @PhilipMorton.

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