The current gen consoles Xbox 360 and PS3’s graphics hardware is powered by Nvidia, but PlayStation 4 uses AMD and Microsoft’s Next Xbox (Xbox 720) is rumored to be powered by AMD.

Rival Nvidia turned down the chance to continue its relationship with Sony for PS4 because of the “opportunity cost,” Tony Tamasi, senior VP of content and technology at Nvidia, told GameSpot.

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“I’m sure there was a negotiation that went on,” said Tamasi, “and we came to the conclusion that we didn’t want to do the business at the price those guys were willing to pay.”

“Having been through the original Xbox and PS3, we understand the economics of [console development] and the trade-offs.”

Tamasi said Nvidia is “building a whole bunch of stuff” in other areas, and didn’t want to devote resources to console tech. “We had to look at console business as an opportunity cost. If we say, did a console, what other piece of our business would we put on hold to chase after that?”

“In the end, you only have so many engineers and so much capability, and if you’re going to go off and do chips for Sony or Microsoft, then that’s probably a chip that you’re not doing for some other portion of your business.

And at least in the case of Sony and Nvidia, in terms of PS4, AMD has the business and Nvidia doesn’t. We’ll see how that plays out from a business perspective I guess. It’s clearly not a technology thing,” he concluded.

PlayStation 4 is set for a holiday 2013 release. More news related to PS4 here.


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Source: GameSpot