Nvidia CEO: We intend to keep investing in Shield

Nvidia CEO Jen-Hsun Huang sees Shield spurring the development of great Android games, which ultimately benefits its Tegra business.

Josh Miller/CNET

Nvidia's Shield gaming device is no one-off project for the company.

When asked about whether Nvidia would work on a follow-up to the Android-gaming device, CEO Jen-Hsun Huang would only say that he intends to continue investing in Shield.

"We developed (Shield) as a platform to nurture and grow the Android gaming market," Huang told CNET on Thursday. "To bring great games to Android will take multiple years. It's a long-term endeavor for us."

As Nvidia sees it, more sophisticated-looking games on Android will drive the need for more powerful processors, which is where the company's Tegra 4 chip comes in.

Huang declined to comment on how well Shield has sold, only noting that the company has "modest expectations after a modest investment."

The company's Tegra business, where a bulk of growth is supposed to come from, dropped more than 54 percent to $243.9 million in the third quarter as the company pushed back shipments of its Tegra 4 chip. But Huang said he believes the business is on an upswing, pointing to the 111 percent gain over the second quarter. He projected another period of sequential growth in the fourth quarter.

Nvidia earlier on Thursday reported a third-quarter profit of $118.7 million, or 20 cents a share, down 37 percent from a year ago. Its revenue also fell 12.5 percent to just over $1 billion. Its results, however, managed to top Wall Street expectations.

While Huang touted the broad base of potential customers for Tegra, he conceded that Nvidia would have a smaller presence in high-profile phones found in the US. He said most of the opportunity comes from overseas phones, and noted that the Tegra 4 is powering the flagship phone in China.

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About the author

Roger Cheng is the executive editor in charge of breaking news for CNET News. Prior to this, he was on the telecommunications beat and wrote for Dow Jones Newswires and The Wall Street Journal for nearly a decade. He's a devoted Trojan alum and Los Angeles Lakers fan.

 

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