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Forums - Nintendo Discussion - Nvidia Reportedly Made $972 Million From the Nintendo Switch

Revenue from Tegra processors that are used in the company's automotive solutions and the Nintendo Switch was announced to be $1.53 billion with automotive revenue being $558 million during Nvidia's 2018 fiscal year. Subtracting that from the total Tegra processor revenue of $1.53 billion we get what   the site refers to as  "non-automotive Tegra processor revenue -- in other words, Nintendo Switch processor revenue" totalling around $972 million.

"It's not entirely clear how Nvidia classifies the Nintendo Switch sales, but my guess is that since those chips are based on the very same Tegra processors that go into the automotive market, the embedded market, and the OEM market (although, again, Nvidia's Tegra OEM business is likely minimal as the company has exited the tablet and phone markets), the margins are in the ballpark of what its OEM and embedded business typically generates -- better than automotive, but worse than GPU gaming," writes The Motley Fool's Ashraf Eassa.

https://gadgets.ndtv.com/laptops/news/nvidia-reportedly-made-972-million-from-the-nintendo-switch-1871499

 

It's interesting that in Tegra business Switch made much more revenue for Nvidia instead of automotive solutions.



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Interesting. I guess this could lead for another Nintendo console with a GPU in it. Nvidia won't back off of it.



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Reached PC master race level.

So going by that number vs units sold, they charging Nintendo about $55-60 per chip set.

Wonder how much of that revenue is profit. Surely at least 10%



 

 

Peh said:
Interesting. I guess this could lead for another Nintendo console with a GPU in it. Nvidia won't back off of it.

Oh yeah, that goes without saying. Supposedly Nvidia and Nintendo have a multi decade deal going on, so I'm sure there'll be a Switch follow up. It's really the best road for Nintendo and Nvidia going forward. Seeing what they can do with mobile tech will be interesting. 



Peh said:
Interesting. I guess this could lead for another Nintendo console with a GPU in it. Nvidia won't back off of it.

They already signed a long term partnership. The Switch will be a platform, ecosystem thing.

 

Not a one off device.



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That sounds a lot!



Pocky Lover Boy! 

Nearly a billion dollars from the deal, neither party are likely upset about that profit.

Long live the Switch :o

(it was just hacked recently)



Fancy hearing me on an amateur podcast with friends gushing over one of my favourite games? https://youtu.be/1I7JfMMxhf8

Cobretti2 said:
So going by that number vs units sold, they charging Nintendo about $55-60 per chip set.

Wonder how much of that revenue is profit. Surely at least 10%

I would guess a lot more. I don't think manufacturing the chips is what's costly but researching and developing it. Plus they are selling in bulk which would reduce costs and increase profit margins considerably.



Nvidia chose wisely with there partner ship. They stated theres no money in the console industry hence why they stayed away from the Xbox and PS4.



That's.... a lot.
Wonder 972millions includes something else..