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Reuters said:SANTA CLARA, Calif., March 23 (Reuters) - Graphics chip maker Nvidia Corp. (NVDA.O: Quote, Profile, Research) said on Thursday it has a new design contract with Sony Corp. (6758.T: Quote, Profile, Research) that will pay more than it earned for creating the graphics processor for the upcoming PlayStation 3 video game console.
Sony paid Nvidia about $30 million for designing the PS3's graphics chip, a fee that was paid out gradually as work on the processor was completed, Nvidia's chief financial officer Marv Burkett said.
"We had anticipated that (contract revenue) would drop off, but that's not going to happen," Burkett told financial analysts. "We have new contracts with Sony to do some further designs."
Revenue from the new contract would be "probably slightly more" than the first and would continue into 2007, Burkett said.