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Friday, March 24, 2006
Nvidia Signs New Contract with Sony

Nvidia said on Thursday it has landed a new design contract with Sony but the graphics chipmaker won't reveal what the work is for.

Nvidia previous created the graphics processor for the upcoming PlayStation 3 video game console from Sony.

Marv Burkett, Nvidia's chief financial officer, revealed that revenue from the new contract would be "probably slightly more" than the PS3 one and would continue into 2007.

Sony paid Nvidia about $30 million for designing the PS3's graphics chip, a fee that was paid out gradually as work on the processor was completed, said

"We had anticipated that (contract revenue) would drop off, but that's not going to happen," Burkett told financial analysts. "We have new contracts with Sony to do some further designs."

However, he wouldn't reveal the nature of the product both companies will be collaborating on. "We have a contract to do engineering work for them," Burkett said. "I don't think I should discuss what that product is."

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