Microsoft to cut Nvidia from X-Box 2 ??

[AGodspeed]

Via and M$ - This would be a brilliant combination.

Think about it guys.

Via has a graphics core division (S3) which is developing a new high speed graphics core called the Coumbia that will be produced with a .13m process. This core is supposed to compete with high end cards from nVidia and ATi according to the PR drivel.
More importantly, it will have a DX9 compatible. As we now know for console gaming, feature sets are becoming more important than brute speed because resolution is not really the issue on standard TV's.

Via also has a CPU - the C3 - manufactured on the .13 micron process as well. This bad boy does not need a fan yet puts out some impressive processing power.

Via is also making its own boards now... Do you see how they could be an ideal partner for M$?

What is the Xbox's problem technologically speaking? Heat.

Advantage - VIA. Most of the parts rolling off of the Via line nowadays are designed to require only passive cooling. While PC enthusiasts may scoff, that is an awesome advantage in a crampt non-ventilated console. To have that kind of power available with minimal cooling means a higher MTBF logically for most of the system, reducing repair costs for M$, and increasing the longevity of the system - allowing M$ to seel more games to happy customers for years to come.

It is all about economies of scale and volume purchasing. Via is in a position to provide an integrated board with video and CPU - all Via for a fraction of what a competing nVidia and Intel solution will cost.

Good analysis.

I agree with you that VIA seems like a good partner for MS. VIA is very experienced in chipset design and is now a major player in the mainboard market in general. Their CPU's would be perfect for XBox, however I'm a little confused as to why MS would choose VIA low powered CPU's for XBox2 if they can just get a bargain on low powered Intel Tualatin processors.

Even so, when is XBox2 even coming out? Like 2-3 years? Unless VIA has some great CPU's and graphics designs ready for the future, I don't see why MS wouldn't go with nVidia for the GPU, Intel (or even AMD) for the CPU, and maybe Intel for the chipset (or nVidia again).

Hell, XBox2 is probably so far away that MS might even be thinking about using a ClawHammer processor.

 

[ViRGE]

The X-Box2 is easily 3-4 years away, so all this speculation is rather frivilious.

 

[DevilsAdvocate]

M$ is not necessarily going for speed here as much as it may be for profit margin on a soon to be released follow-up to the Xbox.

There have been some pretty persistent rumors that M$ might be making a box called "HomeStation" that would play Xbox games, add Tivo, broadband ethernet, with a much larger hard drive. The aim would be to make this a total home entertainment solution.

Follow my train of thought here...

M$ threw $500 m at the marketing campaign for Xbox. Why? Probably to get their foot in the door as a serious competitor in the console biz. Many (I don't know why) felt that M$ would fail and the glossed the Xbox the X-flop. The reality is that M$ has produced one of the most highly desireable platforms from a developer's perspective.

M$ can break even on the Xbox through continued software sales, but they need to try to get their production cost down to compete with the other consoles. M$ is a corporation and needs to make $$$ to keep the shareholders happy.

This is why Via is ideal. VIa could supply similar hardware to the Xbox shortly at a fraction of the price. M$ could also be the agent of quality control - making damn sure that the Via graphics core is ready when S3 says it is. M$ did a pretty good job on the nForce chipset from nVidia - nVidia's first chipset.

Via is big enough to supply M$'s every need. They are the only company out there with video, CPU, and audio solutions - even motherboards - ready for easy and inexpensive integration.

They are also small enough to be hungry enough that they would be willing to cater M$ just to get the chance to make killer bank off a deal that could reult in them making the core of millions of consoles.

They are also small enough that M$ could buy them - or invest in them (effectively buying them) insuring their loyalty. AMD isn't. Intel isn't nVidia isn't. The aforemention companies also don't make video, CPU, and boards...

This deal would cut out superfluous vendors. M$ could produce a cheaper Xbox... and that is all that matters in corprate America.

 

[tops2]

i wanna see in that xbox an intel cpu and via other stuff
lol

 

[Novgrod]

Don't forget that there are Via ads all over the inquirer.

I think Sony and Nintendo would laugh at MS if they opted for a via solution. I know I would.

Edit: I'd laugh because having nvidia inside sold a number of x-boxes. Having via inside would make some people who would otherwise have bought an x-box stay away.

 

[DevilsAdvocate]

AGodSpeed -

I agree with you that VIA seems like a good partner for MS. VIA is very experienced in chipset design and is now a major player in the mainboard market in general. Their CPU's would be perfect for XBox, however I'm a little confused as to why MS would choose VIA low powered CPU's for XBox2 if they can just get a bargain on low powered Intel Tualatin processors.

Via is small enough that it can't dictate terms to M$. Intel and nVidia make large profit margins because their stockholders expect and demand it. M$ could also heavily "invest" in Via, assuring themselves a better deal in a "strategic partnership." M$ can't really control Intel and would have less influence on pricing. I would personally prefer an Intel CPU to the Via, but Via can definitely cut them a better volume discount on the CPU's when they are integrated onto the board.

Even so, when is XBox2 even coming out? Like 2-3 years? Unless VIA has some great CPU's and graphics designs ready for the future, I don't see why MS wouldn't go with nVidia for the GPU, Intel (or even AMD) for the CPU, and maybe Intel for the chipset (or nVidia again).

I don't think Xbox2 is that far away. The reason M$ would want to go with Via is for the all in one vendor solution as it does cheapen things up a bit.

Again, the bottom line is everything.

 

[JellyBaby]

I think the explanation is simpler. Remember Microsoft had both AMD and Intel right where it wanted them when choosing the CPU to drive the XBox. Intel was so afraid of AMD getting that contract that it pretty much gave P3 CPUs to MS at cost. AMD said it just couldn't afford to give away products to MS and who can blame them?

So here MS is again attempting to setup the same scenario: multiple companies competing to provide an expensive system component for the Xbox 2. Lowest bidder (which MS hopes will be really, really low) gets the contract. In the end Nvidia, VIA, ATI won't be happy but MS certainly will.

 

[DevilsAdvocate]

Jellybaby gets it. I just think Via could be sooooo manipulated by M$ that it would come in the lowest for all the parts - meaning there would be less negotiation for different product prices. Via colud just sell them the whole friggin' board.

 

[Chrono]

bit boys oy is kthx vaporware ;p

 

[joohang]

advocate,

Do you ever abbreviate Microsoft with an "S"?

It'll improve readability of your messages. Just try it. MS.

I keep reading "em-dollar" when I read your posts.

BTW, you made some very interesting points. Thanks.

 

[joohang]

You know what I'd like to see?

A TabletPC-based mobile X-Box console.