HomeTechnologyNvidia Calls Partnership With Nintendo a Smashing "Home Run"

Nvidia Calls Partnership With Nintendo a Smashing “Home Run”

The large-scale success of the Switch has helped Nvidia register a massive revenue spike, shredding expectations from financial analysts for the green team.

The hybrid console, which launched in March, is powered by the company’s Tegra processor. Do recall that Nvidia chose to walk away from the opportunity of providing of custom chipset for Sony’s PlayStation 4 because of terrible console margins. However, the same company entering the console business a few years later is bound to raise a few questions.

Addressing investors during its latest earnings call, CEO Jen-Hsun Huang stated that “consoles is not really a business to us [Nvidia], it’s a business to them [Nintendo].” The final decision to join forces with Nintendo was because it made sense and the company considered the strategic alignment as great.

“In the case of the Nintendo Switch, it’s just an incredible console that fits in such a small form factor. And it could both be a mobile gaming device as well as a console gaming device. It’s just really quite amazing, and they just did an amazing job,” praised Huang.

He also added that the console is a “really, really innovative product and really quite ingenious.” Huang praised Nintendo for its efforts to bring something unique to the market and giving Nvidia the opportunity to be a part of this journey. He marked the newfound partnership as a “home run” for Nvidia.

Revenue from Tegra reached $332 million in the first fiscal quarter ended April 30, which is up by 108 percent for the same period last year and 29 percent from the previous quarter. While analysts predicted Nvidia to earn 66 cents a share on revenue of $1.91 billion, it reported 85 cents a share on revenue of $1.94 billion. Earnings per share were up 85 percent from a year ago, and revenues were up 126 percent.

The Switch has just started its journey. Its continued success is only going to bring more good tidings for Nvidia in the future.

via NeoGAF

Saqib Mansoor
The odd man in the group who hates chocolate, cheese, and having to work on Sundays.


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