Nvidia in Arbitration with Microsoft on Chips
Reuters | at | by Mike
Microsoft Corp. has forced graphics chipmaker Nvidia Corp. into arbitration over the price of chips made for the Xbox game console, and Nvidia said on Monday that if it loses the case it may have to make the chips at a loss. The net result could be either a gain of $13 million as deferred revenues from the Microsoft deal comes on to the books if Nvidia wins the case, or the prospect of having to pump up production, pay damages and slash prices if it loses, executives said.