https://gadgets.ndtv.com/laptops/ne...-972-million-from-the-nintendo-switch-1871499
(Close it if old, i haven't seen any thread about this here on Era yet)
(Close it if old, i haven't seen any thread about this here on Era yet)
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Nvidia Reportedly Made $972 Million from the Nintendo Switch
- Thread starter Deleted member 36622
- Start date
So going by a total of 17.79 million Switch unit sales in that fiscal year, that means that Nvidia earn roughly $54.64 on each Switch sold. That's pretty high!
Money is money. I don't know any company that would laugh at the opportunity to make almost a billion dollars.
I wonder if Nvidia had to give back anything to Nintendo; there has to be a clause somewhere for them to be liable to the vulnerability.
Cool.
How about you use some of that to create new features for PC folk.
An up to date looking control panel would be nice. Maybe some global TAA, and AO options for a start.
How about you use some of that to create new features for PC folk.
An up to date looking control panel would be nice. Maybe some global TAA, and AO options for a start.
They ain't getting paid from software sales....so whatever sells hardware (piracy) is good for them ...lol sneaky Nvidia.
New costly cutting edge chipsets that would have razor thin revenue, yes. This was old ass tech they literally made no adjustments on their end for, with better margins. They couldn't get away with that for actual consoles.
Yes, they earn that in revenue. That's the cost of the Tegra X1 SOC to Nintendo, that's what I'm referring to, it's a pretty substantial amount per console.
Rumour has it that NVidia were selling it at almost break-even to Nintendo, but that seems unlikely if the price is that high per unit...
They are providing the SoC, that price isn't particularly high.
It is a low-margin business after all. AMD doesn't really make a fortune with their PS4 and Xbox deals. However, they pretty much had to take every high-volume deal that they could get pre-Ryzen due to their precarious financial situation at the time.
In contrast, Nvidia never really needed those deals in the first place. Afaik, their CEO argued that they could invest the necessary manpower in much more lucrative markets or something. Also, the Switch probably didn't really need that much of an R&D investment from Nvidia's side. I mean, they didn't even develop a custom SoC, Nintendo just put a stock X1 in the thing. Nvidia probably had warehouses full of unsold X1's that nobody wanted and they were all too happy when Nintendo happened to come along and was offering to buy them wholesale.
Not if they screw them over on pricing like they did with Sony/Microsoft. I'm kinda worried we will never see the Switch drop far in price.
Welp, this was kinda obvious but it's good news for Switch fans, since it means Nvidia has the incentives to keep up the R&D for gaming SoCs.
speculation always had it that the tegra didn't do well at all in the mobile space so nintendo was able to get a good dea on nvidia's excess stock
It's also not including Shield (which seems to gets tons of thumbs up whenever a deal appears on Slickdeals). So those things are still selling to people who want the best 4K streaming box out there. And those are 200+ a pop to the "revenue" pot. 1 Shield is worth X times more to the revenue pie than each Switch sold. Not saying Switch isn't the majority of the pot, but it's certainly not all of it.
I'm not gonna lie, that article triggers me a bit. Makes it read like Nvidia's clockwork quarterly records aren't the work of the GPU business. If the Switch contract never existed, they still would have been setting those records. The reverse can't be said.
No. They've never had one.
EDIT: Meant to edit that in, not quote myself. Dur.
So is this licensing money or money for the actual chips? I dont know if we can napkin math Nintendo's price.
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It's possible, before the Switch i thought Nvidia was going to shut down their Tegra line, since it was supposed to compete with Qualcomm, Samsung and Mediatek and they were not even close to reach that goal with previous partnerships that didn't go well (Google with Nexus 7 was fine but then Nexus 9 was a disaster) and yes, they found a niche with automotive and IoT but, as you can see here it's still not a huge business for them.
I was gonna say it's irrelevant, but I guess it's not. I don't know. Either way the actual profit would be the same, but I guess one method would further inflate revenue (although it would be offset by an equal increase in expenses).
This is more evidence to me that Nvidia will do everything in their power to keep their ralatiobahip with Nintendo, Mariko likely came out 100% of their own pocket in RnD
according to semi-accurate way back when, Nintendo buys the chips that Nvidia has made, so the latter
Non-automotive Tegra revenue probably also includes stuff like the Shield. I doubt it's much compared to the Switch, but it's worth mentioning, at least. Given that we keep hearing about stuff like the emulated Wii games on the Shield in China, I assume the sales aren't completely trivial.
Still should not be small as likely most of it was overstock of X1s already. I guess
Nintendo is really spoiling us if they have allowed for a $50 SoC in the BOM. The 3DS potato chip can not have cost more than $20 at launch.
That leaves them about $50-70 to hit the $100-120 BOM I expect they have shot for for the whole unit.
If I had to guesstimate, display is probably around $30, wireless chips $5, onboard memory $5, IO devices $20, battery $8, charger $2, dock $10, packaging and manuals $4. They might have to compromise on their typical margin somewhat.
That kinda of chip in a handheld under current tech will likely last 10 monute battery, if the heat productions doesnt melt the thing 1st
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Yes and here is where i'm a little worried, because if you look at the reason why previous Tegra chipsets failed on smartphones, it is similar to what happened to PS3: they rushed new processors just for the pride of having the most powerful one on the market. It took 4-5 generations to make a really decent Tegra.
With the Switch Nvidia and Nintendo made the right call using the X1 which was already mostly fine on the Shield (and yet apparently it has issues with bluetooth), so i hope Mariko isn't just powered by the latest unrefined Tegra chipset with hundreds of issues.
In addition to Shield sales and other Tegra licensing, on Switch Nvidia isn't just being paid for hardware but services. Nintendo's likely even paying even less per unit on those X1s than people are speculating.