While AMD has been taken on as the graphics supplier for next-generation consoles, this being the Xbox 720 and PS4, news has now been reported that Nvidia had previously passed on the opportunity to work on the PS4 due to the opportunity cost involved with working with this console.
As reported by GameSpot on March 14, Nvidia has stated that they chose not to work with Sony on their next-generation console, the PS4. Senior VP of content and technology at Nvidia stated "I'm sure there was a negotiation that went on, and we came to the conclusion that we didn't want to do the business at the price those guys were willing to pay."
"Having been through the original Xbox and PS3, we understand the economics of [console development] and the tradeoffs."
Instead, the role has been placed upon the direct competitor of Nvidia, this being AMD. While AMD is currently going through tough financial times, the company hopes that the business involved with working on next-generation consoles such as the Xbox 720 and PS4 pay off.
For those of you that are interested, you can view a few concept photos of the Xbox 720 and PS4 in the slideshow featured of this article.