I recently read an article about the Nvidia CEO.
He basically said he might not go forth with future next-gen XBOX chip designs, since it cost his company valuable design resources in the bread-and-butter PC market. According to him, this led to Nvidia taking a back seat to ATI in the PC segment.
When you add all the ilegal ssues with Microsoft over the Xbox, well that didn't bode well for future business obviously.
The CEO marked his intention to make the PC segment his #1 priority. Seeing the design talent at Nvidia, I have little doubt they'll have trouble competing with ATI.
Any CEO worth his salt, though, would try to keep juggling both businesses in the air. Losing XBOX is a MAJOR BLUNDER. A MAJOR BLUNDER! The stock price loss is refelctive of this loss of business.
When you take into account that XBOX is hitting its stride and clearly the #2 console in the market, the business loss becomes that more marked.
Microsoft never loses. They are VERY PERSISTENT. I would not be surprised seeing their next gen console take the market lead away from PS2. They've already purchased many of the best game manufacturers. When you have the games, you get the audience. And they have the CASH to continue in this manner.
