A few questions on PS3 - nV deal, as well as acquisitions

[Nelsieus]

1.) I know this has been stated before via a webcast posted by Uttar, but I'm still a bit confused about it. My question is how much money nVidia will be recieving and per what basis (each month, each quarter, each PS3 sold) by Sony on the PS3 deal?
And also, what about royalities from Microsoft (hardware emulation on X360), or has this even been discussed before?

2.) When exactly do the ULi and Pace Soft Silicon aquisitions go into affect. For example, when will their financials begin to be included with nVidia's via their quarter results. If that has happened already, then does that mean during the next quarter conference call, nVidia's revenues and profits would be significantly higher since ULi and Pace Soft is being included. Or does it work in some totally different way that I'm oblivios to?

Anywho, thanks for your time. Hope my questions weren't too stupid.

 

[Arun]

Hey! First, on the topic of the PS3's Revenue. Exact figures are unknown, but here are the three revenue sources:
- Non Recurring Expenses: Sony paid a fixed amount of money on a percentage-of-completion basis for the RSX design and fab porting.
- License Fees: Sony pays a fixed quarterly amount of money to NVIDIA for technology licensing. Revenue from that source began ~2 quarters ago iirc, and is supposed to last 3 years. (~12 quarters)
- Royalties: Sony pays a fixed amount of money per PS3 produced each month to NVIDIA. So in July, NVIDIA will get all the money from all the first PS3s produced in June.

As for the XBox360, I believe it had NRE revenue pre-release and currently has Royalty revenue exclusively (that is, there isn't a technology licensing part that I'm aware of). ATI gets $3-5 per Xbox360, according to Dave Orton, apparently.

As for ULi and Pace Soft, neither company really has any significant revenue. If you combine all three companies NVIDIA acquired, you might get an extra $15M revenue or so. ULi is certain to begin being taken into consideration for Q1; I'm not sure about the other two, though. If anything, I'd fear one-time expenses, but we'll see.


Uttar

 

[Nelsieus]

Ah, thank you so much, Uttar! That clears all my confusion up. :smile:

 

[Geo]

As for the XBox360, I believe it had NRE revenue pre-release and currently has Royalty revenue exclusively (that is, there isn't a technology licensing part that I'm aware of). ATI gets $3-5 per Xbox360, according to Dave Orton, apparently.

And "shipped" by MS, not "produced".

ATI have said they don't have any better detail than what they see in the newspapers and industry trades than we do.

I would hope tho that they have the right to audit MS books semi-regularly!