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justinian said:
AMD is "bigger" than Nvidia and has a far more diverse product line. Taking on Intel was never going to be easy and cost a hell of a lot.

The fact that every home console now (or rather will) has AMD tech should go somewhere in easing their financial worries one would think.

This statement is mostly false. AMD's market cap is 1.88 billion while Nivdia's is over 7 billion dollars. 

Both Nvidia and AMD revenue is around ~1 billion dollars every quarter for the last year or so the only difference is that Nvidia always pulls a profit while AMD hasn't in years.

While I agree that it does make sense for AMD to produce a x86 console since they can do an APU like solution, AMD is also willing to cut in to their profits for the sake of getting the business. Nvidia doesn't have to/want to do this as much as AMD.