Consoles are small business to nVidia as they get most of their revenue from other sources such as the PC market where they're dominating. I don't think this is a big deal for them as they have plenty of revenue coming in.
AMD really needed the console business as they're struggling but it also made logical sense for the console manufacturers as they have the most expertise in building both CPU and GPU tech together. They have both X86 capability (which nVidia don't), and they make make powerful GPUs (which Intel struggle at). They were also willing to put in the extra R&D to produce custom chips which I doubt nVidia would have done as it would only make up a small part of their business.
On top of this, AMD recently acquired an ARM license although we've yet to see anything truly spectacular come of this yet. AMD have a lot of potential and are making the right moves but they're still struggling compared to nVidia and Intel.
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