NVIDIA releases High-End Graphics Chip (Reuters)
By Ben Berkowitz
LOS ANGELES (Reuters) - Microchip designer Nvidia Corp. (NVDA.O: Quote, Profile, Research) on Wednesday unveiled its newest high-end graphics chip, with technology it hopes will give it a leg up in the ultra-competitive market for high-performance computer-graphics products.
Santa Clara, California-based Nvidia said the GeForce 6 series would offer a number of new features, including a faster architecture, compliance with the latest software standards and on-chip video processors for high-definition encoding and decoding and direct-to-television playback.
The new high-end product, the GeForce 6800 Ultra, will retail for $499, while a slightly less powerful version, the GeForce 6800, will sell for $299.
Nvidia executives said the new chip would offer more flexibility for game designers and graphic artists, while increasing performance substantially over its previous top-end part, the GeForce FX 5950. Early reviews of the 6800 Ultra said it doubled the performance of the 5950.
Nvidia said the chips, formerly known by the code name "NV40," are shipping to computer makers now and add-in cards using the new parts would be available at retail within the next 45 days.
The chips will be manufactured using the 0.13 micron process, a reference to the width of features on the chip, by IBM (IBM.N: Quote, Profile, Research) , which Nvidia took on as a foundry last year in addition to its long-time manufacturing partner Taiwan Semiconductor Manufacturing Co Ltd. (2330.TW: Quote, Profile, Research)
Analysts following the company gushed over the potential of the new chip and what it means for the company's future.
"Given the improving gross margin picture, the impressive graphics capacity of the NV40, and the new market potential in coming periods we would be inclined to upgrade Nvidia again, if we could," Pacific Growth Equities analyst Brian Alger said in a note. "However, with an existing Over Weight rating we reiterate our rating."
HIGH END CRUCIAL
Both Nvidia and its chief competitor, ATI Technologies Inc. (ATY.TO: Quote, Profile, Research) , covet the high-end graphics consumer because of the higher margins on those chips and also the word-of-mouth references that power users provide to friends, family and co-workers.
Nvidia lost ground to ATI in that marketplace when it stumbled with shipping delays and production problems for a previous high-end product, the GeForce FX 5800.
While it has regained some of that ground with subsequent units for the high-end enthusiast and professional market, analysts and industry observers have nonetheless placed heavy importance on the new chip, and Nvidia plans to promote the new GeForce 6 line heavily.
"We're a company that's well known but not nearly as well known as we should be," David Roman, vice president of marketing for Nvidia, said in a recent interview.
Hardware enthusiast Web sites, whose opinions are considered crucial among high-end computer consumers, had good things to say about the new parts.
"So the four-word version of this review would simply be: it's really bleeping fast," ExtremeTech said in its preview.
"Even with the added power requirements, the kinds of performance gains we have seen are pretty substantial, and ATI will have a good fight on their hands," AnandTech said.
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