Loading ...Ouch… first Novell agrees to partner with Microsoft and pisses off the OS community, now they are claiming Windows has a lower TCO than Linux (Which may be true in some cases, who knows). I’m not sure if Novell knows exactly what it’s doing, or is starting to feel the pinch of working with Microsoft.
Much like NVIDIA felt after doing the original XBox with Microsoft. Seems to be the partner from hell.
Update #1: Lisa did point out a lack of facts in the original post, here are some links and snippets to make the post a bit more meaty:
http://www.quartertothree.com/game-talk/archive/index.php?t-112.html
And here:
http://en.wikipedia.org/wiki/NVIDIA
Scroll down to “Shortcomings of the FX series”, snippet:
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The Xbox contract did not allow for falling manufacturing costs, as process technology improved, and Microsoft sought to renegotiate the terms of the contract, withholding the DirectX 9 specifications as leverage. As a result, NVIDIA and Microsoft relations, which had previously been very good, deteriorated. Both parties later settled the dispute through arbitration and the terms were not released to the public. However, the dispute was what prompted NVIDIA to pass over developing a graphics solution for the succeeding Xbox 360
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March 15th, 2007 at 11:08 am
What are you talking about? NVIDIA loved their relationship with Microsoft. Instead of Microsoft owning the rights to the video chip NVIDIA owned it. That meant that it was impossible for Microsoft to negotiate the price down over time even though NVIDIA’s cost to produce went down dramatically. They were practically minting money with that relationship.
Likewise Microsoft wrote Novell a very large and nice check in return for basically nothing.
Try breaking it down with facts.
March 15th, 2007 at 11:14 am
I thought so too, but then things started to get nasty about MS feeling they were paying too much for the chips and NVIDIA thinking they were getting raped:
http://www.quartertothree.com/game-talk/archive/index.php?t-112.html
And here:
http://en.wikipedia.org/wiki/NVIDIA
Scroll down to “Shortcomings of the FX series”, snippet:
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The Xbox contract did not allow for falling manufacturing costs, as process technology improved, and Microsoft sought to renegotiate the terms of the contract, withholding the DirectX 9 specifications as leverage. As a result, NVIDIA and Microsoft relations, which had previously been very good, deteriorated. Both parties later settled the dispute through arbitration and the terms were not released to the public. However, the dispute was what prompted NVIDIA to pass over developing a graphics solution for the succeeding Xbox 360
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My take on that is things went to the dogs, not that they were awesome. If things were good or even tollerable there is no way NVIDIA would have passed on XBox 360. Things had to be *shit* for them to pass on a deal like that. It’s like printing money.
Also my take on Novell wasn’t that their partnership was bad financially, but that they are feeling the sting (needing to speak against some of their own classic marketing) of the partnership.
March 16th, 2007 at 7:13 am
The reason Nvidia passed on the Xbox360 is that Microsoft wanted them to design a graphics chip that Microsoft owned. Microsoft wanted do this so they could then ship their design around to any of the foundaries like TSMC and participate in the falling cost curve for chips. Nvidia would have gained a one-time design contract (and one-time revenue stream) to design the chip and then no more money. Not nearly as lucrative as the Xbox situation (’shit’ as you put it). I highly doubt their relationship is strained because they still must work closely graphic card drivers for Windows computers. Given Nvidia’s sorry state in that department they need all the help they can get. So Nvidia either passed over the 360 deal or lost in a design bid to ATI. Microsoft owns the chip in the Xbox360 so ATI didn’t make much on the deal.
March 16th, 2007 at 7:14 am
Lisa,
I appreciate the additional information, these weren’t things I knew.