Sony uses Nvidia graphics hardware on the current PlayStation 3 and it was expected that the Japanese company would continue its partnership on the upcoming PlayStation 4.
That isn't the case, however, as the PS4 uses a hybrid processing unit made by AMD with both a CPU and a GPU manufactured by Nvidia's rival.
This isn't upsetting to Nvidia, however, as the company's senior executive in charge of content and technology, Tony Tamasi,
"I'm sure there was a negotiation that went on," Tamasi said, "and we came to the conclusion that we didn't want to do the business at the price those guys were willing to pay. Having been through the original Xbox and PS3, we understand the economics of [console development] and the tradeoffs."
Sony confirmed that the PS4 would be using AMD hardware and Microsoft is expected to do the same with the upcoming Xbox 720, which is also going to sport components from Nvidia's rival.
Tamasi highlighted that Nvidia has plenty of different projects underway, like Shield, and can't really afford to get tied into exclusive contracts with Sony or Microsoft.
"We're building a whole bunch of stuff," he said. "In the end, you only have so many engineers and so much capability, and if you're going to go off and do chips for Sony or Microsoft, then that's probably a chip that you're not doing for some other portion of your business."
"And at least in the case of Sony and Nvidia, in terms of PS4, AMD has the business and Nvidia doesn't. We'll see how that plays out from a business perspective I guess. It's clearly not a technology thing."