In a bid to cash in on the growing popularity of hand-held
) recently unveiled its new portable gaming device called
"Project Shield," which is based on its Tegra 4 processor.
The new device features a controller identical to popular
gaming consoles and a tablet-like display. The integration of
controller with a tablet screen will likely enhance the gaming
experience and will mainly target gamers opting for shooter
games. With the launch of the new gaming device, NVIDIA seeks to
diversify its business operations.
NVIDIA's Tegra processors have gained immense popularity and
are increasingly being used in
) Nexus 7,
) Surface tablet, HTC's One X smartphone and
) PSP hand-held gaming device.
The newly introduced Tegra 4 has four distinct features, along
with a low-power fifth core that is used for light processing
tasks such as email or messaging. In this new gaming device,
NVIDIA has used 1.9 GHz ARM A15 cores. This new technology will
enhance product performance with 45% less power consumption.
Industry experts expect the Asia-Pacific region to rule the
gaming market with respect to both growth and market share gains.
The video gaming industry in BRIC countries however are expected
to grow in line with the economic expansion.
NVIDIA delivered decent third quarter 2013 results. Although
the decline in PC demand may affect results in the upcoming
quarter, new offerings from the company can help win new
Moreover, the acquisition of data chip manufacturer Icera will
add value to NVIDIA's product portfolio. Moreover, the newly
introduced NVIDIA PhysX technology will likely attract more
However, the company is concerned about the fact that Tegra
offerings are underappreciated by investors. NVIDIA's performance
may be tempered slightly by the weak gaming market, economic
slowdown in Europe and increased competition.
Currently, NVIDIA holds a Zacks Rank #3 (Hold).
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