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[Random_Matt]

JRPGfan said:

bonzobanana said:

Did they have a huge stockpile, not read that anywhere. Also do Nvidia do anything cheap, they are one of the most profiteering companies out there who often price themselves out of contracts and treat their business partner's badly. 

Maybe your right though, Nintendo get their first batch on the cheap and then Nvidia ramp up the price when they can deliver a 16nm chip.

Lets say you make a chip, and assume you can sell it for x amount of $.

You make a couple of million of them (x$ times millions), hopeing to score some Tablet contract...... it falls through.

Now you have millions of these chips laying around in a warehouse.

No one wanted to buy them, so nvidia started makeing Shield TV, shield handheld, ect trying to not lose so much on the chips.

But its not selling well.... so you still have millions left.

Nintendo offers to buy them from nvidia, but knows nvidia cant really sell from a position of strength.

Its sell it to nintendo for dirt cheap, or risk never getting anything for them.

Nvidia choose to sell them dirt cheap.

Semiaccurate wrote a article about it, where they heard it from a inside guy, Nintendo got a really good deal on them.

Nintendo probably have a discusting 70% profit margin like Apple then?