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Microsoft, NVIDIA at war over Xbox

Price, not patents at issue

Partners Microsoft and Nvidia are at war over the troubled Xbox, for which the latter supplies graphics chipsets. In this SEC filing, NVidia discloses that Microsoft is seeking damages for violation of the deal. Microsoft - and not Nvidia as reported by some wires today - took the case to arbitration a week ago. The tattooed encyclopedia says Microsoft wants to pay less than was agreed in the original deal, which tots up to $13 million as of this January. As part of that deal, The Beast paid NVidia $200 million: money that NVidia says it's now spent. Microsoft cut the price of the console in Europe recently to revive demand, and consequently will face lower margins, or more likely since the box is subsidized, a greater loss than it expected.

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