While Nvidia may be suffering from an excessive stock of 10 series GeForce GPUs, it appears that other divisions of the company have been faring better thanks to the Nintendo Switch. While Nvidia doesn't regularly announce how much money its gaming business makes from GPUs and the Nintendo Switch, its recent financial results do give us an idea of how much of an impact Nintendo's hybrid console has had on the graphics specialist. According to a report from The Motley Fool it seems that the Nintendo Switch contributes to 18 percent of Nvidia's revenue in gaming.
Revenue from Tegra processors that are used in the company's automotive solutions and the Nintendo Switch was announced to be $1.53 billion with automotive revenue being $558 million during Nvidia's 2018 fiscal year. Subtracting that from the total Tegra processor revenue of $1.53 billion we get what the site refers to as "non-automotive Tegra processor revenue -- in other words, Nintendo Switch processor revenue" totalling around $972 million.
"It's not entirely clear how Nvidia classifies the Nintendo Switch sales, but my guess is that since those chips are based on the very same Tegra processors that go into the automotive market, the embedded market, and the OEM market (although, again, Nvidia's Tegra OEM business is likely minimal as the company has exited the tablet and phone markets), the margins are in the ballpark of what its OEM and embedded business typically generates -- better than automotive, but worse than GPU gaming," writes The Motley Fool's Ashraf Eassa.
Considering the Tegra processor used in the Nintendo Switch is far from cutting edge, hopefully Nvidia puts those profits towards researching and developing a more efficient, powerful chip. Perhaps one less prone to hacking like the current Tegra X1 processor in the Nintendo Switch right now.
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