NVIDIA (NVDA) Unveils Android-based SHIELD Set-Top Box - Analyst Blog
The battle for living room entertainment has intensified with NVIDIA Corp. NVDA releasing an Android-based Internet video-streaming set-top box named SHIELD. The device is sleek, looks like a carved stone and will be available for sale in May for $199. It also has a Bluetooth-enabled remote control.
The streaming device is built on the Maxwell GPU architecture and Google Inc.'s GOOGL Android software along with NVIDIA's "mobile super chip" Tegra X1 mobile processor, which provides an enhanced gaming experience for users. The box plugs in to an HDTV, and gives users access to a variety of services including Netflix and other media outlets in 1080p (high definition video).
The SHIELD also marks the entry point to the NVIDIA GRID game-streaming service. NVIDIA GRID is a powerful GPU-based platform that supports corporate virtualized desktops in data centers, cloud gaming services and design software-as-a-service. We believe that NVIDIA's focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors.
Popular games such as Batman: Arkham Origins, GRID 2 and Metro: Last Light Redux can be played on SHIELD. Reportedly, 50 games are currently available for streaming through SHIELD and more titles are expected to be added, going forward.
However, the SHIELD set-top box is yet to attain the same level of acceptance and popularity as other media-streaming devices from peers such as Apple's AAPL Apple TV, Amazon
In January, NVIDIA had launched the 256-core Tegra X1 mobile processor at the International Consumer Electronics Show (CES) 2015. This new chip features next-gen PC gaming technologies, which enable PC and console game developers to build apps that can run not only on smartphones and tablets, but also on televisions, consoles and cars. Therefore, the adoption of Tegra X1 will boost NVIDIA's business going forward.
Entertainment has become the fulcrum of modern life. All of us toil for a good living, which also includes entertainment. We believe that NVIDIA's product will create a delightful environment that relieves boredom and distracts one from worries and vexations.
To conclude we also believe that the new product offering will help to grow NVIDIA's sales and attract new users. Furthermore, the breadth of content and sensible pricing strategy will immediately place the graphics chip maker in the same league as Apple TV and Roku.
Currently, NVIDIA has a Zacks Rank #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
