The console market is low margin because they seem to find someone ready to take low margin (e.g. AMD). Nvidia was in console market before but left it due to low margin. Nvidia only sells old low development chip with probably good margin to Nintendo. The chips in the Switch 2 are using node from 2020 and are super cheap in manufacturing and Nvidia had low efforts in developing them.
AMD however has to design new special APUs for Xbox and PS. Why do they do that? They could just decide to step away from the tender but they won't because they seem to be desperate for any business. Jensen was like that 20 years ago but he has learned that some business you simply step away from.
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The console market is low margin because they seem to find someone ready to take low margin (e.g. AMD). Nvidia was in console market before but left it due to low margin. Nvidia only sells old low development chip with probably good margin to Nintendo. The chips in the Switch 2 are using node from 2020 and are super cheap in manufacturing and Nvidia had low efforts in developing them.
AMD however has to design new special APUs for Xbox and PS. Why do they do that? They could just decide to step away from the tender but they won't because they seem to be desperate for any business. Jensen was like that 20 years ago but he has learned that some business you simply step away from.