Nor was MS with Xbox. nVidia, though they make great GPUs, tend to have horrendous business practices, particularly when it comes to working with other big tech corporations. They piss people off left and right. AMD does have quite a bit going for them on the embedded devices end.
I do hope they use a quad-core APU so that us PC gaming folk quit getting shafted with crappy console ports. Llano or Trinity, I don't care.
I am not sure what Sony's issue with Nvidia is but Microsofts had to do with negotiating a contract that had their cost per unit decrease based on units sold. The problem was MS completely over sold themselves on how quickly the xBox would sell. MS wanted Nvidia to accelerate the contract due to their own screw up and Nvidia said no.