Source: http://tech.slashdot.org/tech/08/08/02/1749213.shtml

xav_jones sends along a story from X bit Laboratories claiming that NVidia is ready to quit making chipsets. That story links one from DigiTimes, which reports that NVidia has denied that it's getting out of the business. "[NVidia] is about to quit chipset business, which automatically means that the company's much-hyped multi-GPU SLI technology is either in danger or re-considered. Moreover, several mainboard makers have already ceased making high-end NVidia-based mainboards. [NVidia has]... reportedly decided to quit core-logic business to concentrate on development of graphics processors and following failure to secure license to build and sell chipsets compatible with Intel Corp.'s microprocessors that use Quick-Path Interconnect bus."

Thoughts?  Effects on the next gen consoles, etc.

http://www.crn.com/hardware/209901649

http://www.pcmag.com/article2/0,2817,2327006,00.asp

Nvidia said Friday that there's no truth to a Taiwan report that claims it's exiting the chipset business.

That report was published by Digitimes, a normally fairly reputable IT publication that claimed that Nvidia met with its main motherboard clients this week and asked for support for its next-generation chipsets.

The motherboard makers' response? Silence.

Although such a withdrawal would be highly unlikely, ExtremeTech asked Nvidia for comment. "The story on Digitimes is completely groundless. We have no intention of getting out of the chipset business," said Bryan Del Rizzo, a company representative, in a statement. (The same statement was later resent as an official company statement.)

It's a good idea. The problem with the idea that they produce chip sets is that then they focus on getting the most power out of their chip sets. While other chip sets don't get that power. This divides the industry in a negative way. If they don't support that way then there GFX card will be considered across more MoBo when it comes to purchasing.

There will be no effects on the consoles since the chips in question are MoBo chips not the GFX cards or console department.

The future of the hardware market is going to be GPU-less and the we will see single chips work as both CPU and GPU, or CGPU... Intel and AMD are steadily working for that. Intel has Larrabee and AMD has Fusion, but what does Nvidia have? Nothing, Nvidia does not have the infrastructure nor expertise to venture into CPU business, while Intel and AMD have experience on CPU and GPU (the reason why AMD bought ATI) and they will no doubt be the ones to control the entire market.

Since Nvidia's bread is going to the shitter, they only have 2 choices:
- Try follow Intel and AMD, even though being VERY late to enter the CGPU market trend which would no doubt make Nvidia carry some heavy losses.
- Quit chipset business, and focus on other venues.

Is that really a good idea? combining both CPU and GPU onto one chip??

EDIT: NEVER MIND!!

From Wikipedia on the AMD Fusion:

Performance

It is expected a speed increase in both CPU and GPU processing with Fusion. As the CPU and GPU will be on the same die, the information transfer between the CPU and GPU/GPU memory will be significantly increased since there will be no need for the information to travel on a bus as there is with current motherboards—resulting in the GPU able to shunt far more data than on the PCI Express bus, due to significantly larger amounts of bandwidth available.

Yup, but that's not all. Combining CPU and GPU into one chip also means cheaper hardware, much less hardware compatibility issues and no need for upgrades!!! Basically it nearly kills the 3 reasons that some people have against PCs.

Yeah, it will have a huge imact on the price of the 360 come the Valhalla chipset release (CPU/GPU hybrid).

Btw: Would it be better for Nvidia to look into a merger with either AMD or Intel?  It would limit competition but it seems that they are trailing fast.

Edit:  They would have to align w/ Intel as AMD/ATI already exists.  Hmmm, that would be interesting, Intel/Nvidia vs. AMD/ATI.

i can see nvidia opening there doors for discussion of a possible merger with intel...but thats about it. the future is hybrid, so they need to either merge with intel or read up on cpu's and make their own brand (which would be cool if they could actually make their own cgpu, more diverse competition)

Ummm as far as I know that section is profitable, so I have absolutly no idea why Nvidia would live it. I call this BS.

nVidia is having a hard time (WIth defective chips all over the line of products) but they are not going to leave the market...