NVIDIA's Senior Vice President of content and tecnology told Gamespot in a recent interview that his company is essentially letting AMD win. While he's convinced his firm could be AMD if it tried, he says it just isn't worth it, remarking:
I'm sure there was a negotiation that went on and we came to the conclusion that we didn't want to do the business at the price those guys were willing to pay. Having been through the original Xbox and PS3, we understand the economics of the development and the trade-offs.
If we say, did a console, what other piece of our business would we put on hold to chase after that? In the end, you only have so many engineers and so much capability, and if you're going to go off and do chips for Sony or Microsoft, then that's probably a chip that you're not doing for some other portion of your business.
DailyTech - NVIDIA: We Let AMD Power the PS4