Nvidia knows that they have a major percentage of the gpu market locked down, so AMD is the one that needs to search high and low for new available avenues for income. As good as it is for AMD to earn money from the consoles they license gpu tech for, they need to gain some very necessary gpu market share back in the desktop and mobile sectors.

this. Nvidia controls the computer market, which has surprassed the console market. why would they focus on the smaller market when they've already been winning the bigger market and future? (computers). 

  AMD is more desperate so of course was willing to cut down the cost per item to console manufacturer's to get more revenue. 

its good for the market though, I would prefer both continue to do well. competition forces quality and faster strides

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.

- they wont go down in price because instead the APUs going down in price hey bring never more powerfull APU out like with PS4 Neo. Got it?

- Sony charged 600$ at launch for their console and 900$ in manufactering cost. Sony had enough money and ambition to make PS3 the most powerfull console at the time. the GTX 7800 was top notch until Nvidia revealed the GTX 8800. The XBox 360s GPU on the other hand was a Radeon 1800x-something, but had technology from a 2400x-something by AMD. RSX was a normal GTX 7800.

- PS4 Neo is impresive, the GPU the leaked data showed will be twice as powerfull. Look at Uncharted 4, Driveclub and Bloodborne and other PS4 exclsuives. They look better than every PC game, and playing them in 60fps how would it be not impressive? Sony buys the latest APU from AMD.

in no given point in time the entire Hardware computer market was below the console market. It hasnt surpassed anything.

When it comes to game software consoles are number 1

Speaking of AMD, their stock was up 50% on friday xD

Wish I'd have bought lol

It worked out. The more competition in this area, the better. I'm glad AMD was able to put their tech into consoles.

This is like saying Mercedes is in trouble because Toyota sells a ton of Corollas.

Nvidia dominates the high-end market, which, unsurprisingly, is where the money is at.

No. AMD is the one that's about to go red numbers, nvidia has about 75% PC marketshare and it's healthier than ever thanks to GTX9xx series being so good and successful. And Pascal's coming this year which i think it's going to be another succes because millions (including me) will get one. 

Also there's everyday more people joining the PC master race due to PC's advantages over consoles which means more customers for Nvidia.

Yes. AMD were all but dead from what I understood. Now, they have multiple massive money making contracts.