The well advertised and superbly hyped, friendly relationship between Microsoft and NVidia is being tested by the strain of the imminent failure of the XBox console.
It is a well known fact that NVidia provide the graphics chipsets for the XBox, it seems that Microsoft have decided to reduce the price of their console in Europe and Australia and to seek the damages from NVidia.
In this SEC filing NVidia make it clear that they are on the defensive and that Microsoft are the ones attacking.
According to the buzz, Microsoft wants to avoid paying NVidia what was initially agreed in the original deal. Otherwise they would have to pay US$ 13 million as of this January. It was part of the same deal that forced Microsoft to pay NVidia US$ 200 million. NVidia however, claim that that amount has already been spent.
It's confusing but the whole turn of events serves as a reminder that when the going gets tough, Microsoft goes to court.
Whatever the result of the case, it becomes apparent that future versions of the XBox will most probably not carry any NVidia parts; or at least that is what Microsoft hope...
