Will NVIDIA's Tegra X1 Dethrone PlayStation 4, Xbox One?

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In 2014,
NVIDIA CorporationNVDA
told the world that it had
built a chip
that could bring Xbox One-quality graphics to a mobile device. Now the company is
repeating that message
with the all-new Tegra X1. It might sound impressive on paper and perform well in demo form, but is this the real deal? "I think the difficulty, at least for them, is for mobile devices [consumers are] not looking for PC performance," Rob Enderle, principal analyst at Enderle Group, told Benzinga. "They're looking for other things." Dan Miller, senior analyst and founder of
Opus Research
, noted that NVIDIA relies on its partners to bring the chips to market in a product consumers actually want to buy. "The basic silicon makers require their OEMs and carriers to fall in line," Miller told Benzinga. "I just think last year they were throwing a challenge down to their downstream partners. That's what you look for: which of the game makers, device makers, are going to incorporate the chip and provide a complete product."

Related Link: Is Xbox One Really Beating PlayStation 4?

Cars, Not Games

Enderle attended NVIDIA's media event at the 2015 Consumer Electronics Show and found that the company focused more on the automotive space than gaming. "Their big showing for the chip was actually self-driving cars and car entertainment," said Enderle. "It wasn't phones and tablets, which I think surprised the audience a bit. They did showcase that their [chip] in a tablet could provide Xbox One-level performance, which is pretty impressive. Enderle said that an X1 tablet would still need content. "But remember they positioned that Shield tablet as much a portable game system as it is a tablet," he added. "And it differentiated that way. But for the most part they were showcasing the fact that this is the part that is critical for self-driving because you basically have the power of a 2000s-era supercomputer in a 10-watt part. This is a teraflop part, so the amount of processing power is exactly equal to the supercomputers that were out a little over a decade ago." Disclosure:
At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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Posted In: TechDan MillerNVIDIAPlayStation 4Rob EnderleTegra X1Xbox One
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