NVidia was Microsoft’s chip of choice on the Xbox. However, due to ATI’s latest technological gains Microsoft has chosen with the Radeon maker for XBox Next.

Meanwhile it looks like nVidia is taking the other path on console wars - courting Sony for a relationship that leads them into PS3 development. The new chip (under development) will not be an existing nVidia product, but instead a new joint venture with Sony to be manufactured by Sony and Toshiba.

NVidia’s stock (NVDA) went up 5% yesterday.