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Rumors also say NVIDIA will report another quarterly loss

NVIDIA is certainly on the skids financially thanks to several different factors. The company is traditionally one of the most profitable in the GPU and chipset business and commonly turns in significantly improved profits each quarter.

That all changed  in Q2 of fiscal 2009 when it announced a loss attributed in part to a massive one time charge relating to higher than normal failure rates of certain notebook GPUs it sold computer makers like HP and Dell.

In August, rumors started to circulate that NVIDIA would be leaving the chipset business. NVIDIA strongly denied these rumors and said that the reports were false. NVIDIA pointed to the fact that it held 60% of the chipset market for AMD platforms in Q2 2008, SLI was the preferred multi-GPU platform, and its 790i SLI chipset was preferred by editors worldwide as reasons the rumor were false.

Later in August, the announcement was made that NVIDIA would be enabling SLI on Intel's new X58 chipset without requiring the use of its nForce 200 chip. NVIDIA had previously not allowed anyone to enable SLI without including this chip in the design. This move has been seen by some as an indication that NVIDIA is softening its stance on requiring its chipsets as a possible set up for an exit of the chipset business -- without affecting its SLI market.

NVIDIA is unable to shake the rumors that it is leaving the chipset business. CNET News reports that the rumor has surfaced again. The rumor was churned by a Pacific Crest analyst who said, "our checks confirm" NVIDIA will be leaving the chipset business next year.

Further speculation has NVIDIA pre-announcing another loss for Q3 that ends in October. The report of additional losses would be no big surprise with the computer industry as a whole seeing significant revenue reductions due to the weak economy.

Alongside the rumor that NVIDIA would leave the chipset business, another rumor is propagating. The rumor has NVIDIA providing graphics chips for the MacBook systems expected to be announced on October 14. Reports claim that NVIDIA is showing internal prototypes of Mac systems running its GPUs. NVIDIA already provides the graphics chip in MacBook Pro systems, so it would not be that big a shock to find out this rumor is correct.

Adding more fuel to the rumor that NVIDIA will see continued reductions in profits is the prediction from Pacific Crest analysts that NVIDIA could see market losses in the notebook segment to Intel's Montevina integrated graphics processor.

CNET News reports that one of the signs that NVIDIA would be providing GPUs for Apple being pointed to is a simple graphic on the NVIDIA site that some see as a MacBook design possibility. It's easy enough to see a foreign maker of accessories for the iPod leaking Apple designs by unveiling cases too early, but it would be hard to see NVIDIA make that sort of mistake.

Odds are the image is nothing more than a stock graphic the NVIDIA web designer placed on the site. An even more likely scenario has Apple updating the NVIDIA GPUs used in its MacBook Pro notebooks.

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RE: Quelle surprise....
By clovell on 10/7/2008 2:04:13 PM , Rating: 2
Eh, I haven't been through too many, but Nvidia's chipsets are the only ones that have given me trouble. Not trying to condone the OP (jerk), but my personaly experience isn't very supportive of Nvidia.

RE: Quelle surprise....
By Clauzii on 10/7/2008 2:28:33 PM , Rating: 2
Still have a nForce2 machine running. The sound is shite, and I can't install original drivers, but it's rock-solid with the AsRock ones. I also have an old VIA-based machine (KT266A) - Rock-solid too. The Intel chipsets seems good also. I remeber when I had a BX-chipset for my PIII - It clocked to FSB133 with a PIII500e (@666MHz) - It was rocksolid too. Right now I'll await the new types, and see what I'll get for my next rig.

RE: Quelle surprise....
By blppt on 10/7/2008 8:44:38 PM , Rating: 1
Agreed on the nforce2---IMHO the best, most stable AMD chipset ever made. Parents still have a XP 2400+ XPC with an nforce2 chipset, still chugging along.

Via has been pretty much nothing but a nightmare for me, even the Intel based ones like the horrid Apollo Pro 133 mobo I had...the Abit KT7A (KT133A) I had was good, though, once they fixed that stupid SBLive data corruption problem.

The SiS 735 ECS K7S5A I had was the only non nforce2 AMD mobo I ever had that could be considered rock solid.

RE: Quelle surprise....
By Targon on 10/8/2008 8:46:40 AM , Rating: 2
The problems that many people have come from adding tons and tons of features, which means that there is a greater chance for one component or the other breaking. Then you have the quality of the motherboard and the BIOS on the board as a serious issue.

People who buy cheap motherboards with a given chipset will generally have more problems than those who buy the higher end/higher quality boards. It has been years, but I remember problems with FIC brand motherboards with VIA chipsets on them back in the days of Windows 98.

You want pain, try not being able to install the OS properly on a clean install without installing the chipset drivers in safemode half way through the installation. On some of those VIA chipsets, Windows would not talk to the chipset properly to assign IRQs with the default drivers. It was the reason I initially started to avoid VIA, but as time went on, I encountered more and more problems with VIA chipsets.

For NVIDIA, I used to like their chipsets until they decided to put the damned firewall in their chipsets. The implementation was so bad that the firewall would kick in randomly, causing the ethernet to stop working without playing games with the drivers and software. These days, I just have not seen any real advantages over the ATI/AMD based boards since the vast majority of people will not be running a SLI setup anyway. The integrated graphics(for systems that do not need a dedicated video card) on NVIDIA based motherboards also are not great, though still a lot better than Intel.

NVIDIA had a huge edge back in their NForce 2 days with Soundstorm. The audio quality was high enough where for the first time, many people did not bother with a sound card. When they dropped Soundstorm, it made it less attractive to go with NVIDIA for chipsets. It was a mistake to assume that adding a firewall to the chipset would offset what they dropped.

"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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