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Nvidia takes Xbox write-off hit | |
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| Time: 05:08 EST/10:08 GMT | News Source: The Register | Posted By: Alex Harris | ||
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Graphics chip vendor Nvidia Corp has been forced to write off inventory worth $21m as demand for PCs slowed. However, the figure includes $7m for chips for Microsoft Corp's Xbox, suggesting that the Redmond, Washington-based giant is struggling in its battle with market leader Sony Corp's PlayStation2. Nvidia is already in a dispute with Microsoft over the price it pays for chipsets for the Xbox, which the companies have agreed to send to arbitration. But the write-offs suggest that its relationship with Microsoft is damaging its bottom line. In the second quarter to July 28, net income was $5.2m, down from income of $32.9m on revenue 64.6% higher at $427m. At the mid-term stage, net income was up 48.5% at $88.5m on revenue that increased 101.7m to $1bn. Santa Clara, California-based Nvidia warned earlier this month that its revenue would be down about 26% on the previous quarter because of the weakness in the PC market, though it can still boast annual growth rates that most in the industry will envy. | ||
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| #1 By 1845 (12.254.162.111) at 8/19/2002 6:21:59 PM |
| I wouldn't say that XBOX is doing badly in the market. The last numbers I saw put it second to PS2. That means it is ahead of the once great Nintendo. Also, there are XBOX games that are doing really well - Halo and DOA3 among others. Considering this is Microsoft's first game console and it hasn't even been out for a year, I'd say the XBOX is doing really well. |
| #2 By 3653 (65.190.70.73) at 8/19/2002 9:18:06 PM |
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You are right BobSmith. Who would have thought that a first-generation console would even compete with the mighty Nintendo. And beyond a simple market share equation, Microsoft has actually generated more revenue with XBox than Nintendo has with the gamecube. Just do a simple (number of units) * (price of the unit) to see what I mean.
XBox has been wildly successful. It has cemented a position AT THE TABLE. And as we've seen many times before... a "place at the table" is all it takes... ps... 19 XBox LIVE games by end of year. Hoo-Raw! |
| #3 By 61 (65.32.170.1) at 8/20/2002 1:34:54 AM |
| mooresa: Revenue is nothing, who gives a hoot about revenue.... the better question is who is making more profit. |
| #4 By 2960 (156.80.64.120) at 8/20/2002 3:40:33 PM |
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I bought an XBox, but took it back after a day.
It just didn't impress me. The PC games just have much better graphics and deeper game play in them. It was also just a bit too proprietary for me. TL |
| #5 By 7390 (63.211.44.114) at 8/20/2002 7:26:08 PM |
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I bought an xbox when it first came out and I still have it and play it almost every day. It impressed me. The game Halo is the best game ever and I am hooked on it. The graphics are on par with "PC Games". I like the fact it's not too proprietary since it's "off the shelf parts"
RedHook This post was edited by RedHook on Tuesday, August 20, 2002 at 19:27. |
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