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30 Apr 2002
Graphics chip maker nVidia has gone to legal arbitration with Microsoft over the price of one of the chips it installed in the Redmond giant's Xbox games console.
vnunet.com understands that the two companies, which have a long-running relationship, are at odds over the price that Microsoft pays for the processors.
nVidia custom built the chip specifically for the Xbox, but the company's chief executive, Jen-Hsun Huang, insisted that the row was not the end of a "wonderful relationship".
"Arbitration is just one step in an overall process in resolving this thing," Huang said in a statement. "In the meantime we're recognising the difference between what Microsoft is paying and the price it believes it should be paying as deferred revenues."
Microsoft is currently looking to slash the cost of its Xbox, which has so far failed to capture the hearts and minds of gamers throughout the world.
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