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NVidia, MS Xbox squabble drags on

No console consolation

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Nvidia tells us it has several business relationships with Microsoft which are warm and productive, but the one involving Xbox graphics chipsets is beginning to resemble a divorced couple squabbling over visitation rights.

Nvidia continues to supply The Beast with the graphics it needs for the games console, but the two can't agree on a price. The dispute went to arbitration in April and a final decision isn't expected before next summer. But Nvidia has to do the right thing, and account for this as deferred revenue.

In =800080" target="_blank">this SEC filing published on Tuesday, Nvidia said it needs to defer "an amount equal to the difference between the price being paid by Microsoft and the price Microsoft claims it should be paying."

The total amount of deferred revenue stood at $46.2 million at the end of July. Nvidia has asked the arbitration panel for "pricing relief" and damages. ®

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