I had a chance to sit down with Derek Perez of NVIDIA Corporation Sunday morning and discuss with him the important role that NVIDIA is playing in the Xbox development, as well as key features of the two NVIDIA components, CES, his thoughts on Xbox and much more. Here is an snippet:

ActiveXbox: I think that with NVIDIA providing the graphics processor and the MCP for Xbox that it will better establish NVIDIA as a company that can be innovative in other areas than graphics technology, especially with the MCP component.

Derek Perez: Oh, definitely. When this first happened it was kind of like Microsoft’s Trojan horse in your living room but the same holds true for NVIDIA. This technology can be found in the next three to five years in just about every digital appliance you could think about. The core technology you could probably put in a PDA, in a cell phone, in any digital appliance you could think about because the guts of every digital appliance are about the same. You are going to have to have good graphics, connectivity, and the main brain CPU.