Nvidia is a purchase of the chip designer arm, and this could be very good news for Nintendo

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Arm – a $ 40 billion acquisition from Japanese company SoftBank by Nvidia – the British semiconductor design firm behind mobile technology found in millions of devices worldwide, through companies such as Apple, Microsoft and Qualcomm.

Initially, at least, it seems that Nvidia is eager to keep things and will be based in Arm UK – Nvidia has also funded funding to build an AI research center at Arm’s headquarters, indicating that it The deal is about the future of AI as more and more it is leveraging Arm’s network of technology. Nvidia has also stated that it intends to create a large-scale branch-based data center for cloud computing and other uses.

In the long run, however, it is not unreasonable to see Nvidia’s way of forcing its way into the CPU sector, an area in which it has traditionally struggled. The company’s primary area is making GPUs, and its Tegra “one chip outside the system” line – which is used in the Nintendo Switch – is more concerned with AI and in-car technology.

Early Tegra chips were intended for smartphones and MP3 players such as the ailing Microsoft Zune, but Nvidia found it difficult to take the lead in the smartphone arena dominated by Qualcomm’s arm-based Snapdragon chipset and instead put its silicon into tablets and selfies be focused. The Nvidia Shield line-like device – the construction of which certainly helped to catch Nintendo’s eye, when it came to technology, led to the desire to use it inside the switch.

Arm’s business model is based on licensing other companies to manufacture their IPs rather than producing chips. This means that once the deal is done, Nvidia (via Arm) will receive a royalty on every Arm chipset manufactured in the world.

For Arm, this is yet another sign of how successful the business – which was founded back in 1990 at Archimedes’ home computer for Acorn Computer – has become in recent years. Arm chip is used in almost all smartphones these days, and the first Game Boy Advance, Nintendo DS, 3DS and Switch (Nvidia’s Tegra “System on a Chip” arm silicon has been used as its CPU) . Apple recently decided to use the Arm chip in its future MacBooks, and Microsoft is also building a version of Windows and Surface OS that will run on Arm. There is some way to explain why Nvidia had to pay more than $ 30 billion to $ 10 billion in 2016, with Softbank buying the firm – at a time when Nvidia was priced nearly the same. Today, Nvidia is valued at $ 300 billion.

So, how does this benefit Nintendo? Nvidia and Arm are now under the same roof (so to speak) only to make the former position in the market more secure; It will now have a major impact on the world’s most popular mobile CPU technology (although it has been said that Nvidia intends to keep the arm “neutral”, so it won’t have any unique advantage, at least to begin with, and next It can make good sense of Nintendo’s position in the game hardware market over the decade – assuming it decides to stick with Nvidia’s Tegra chips.

Arm’s success will now directly benefit Nvidia, which will only strengthen the company’s position in the mobile chipset market. Nvidia is already a world-leader when it comes to GPU technology (an area that includes Arm, via its Mali chipset), so Arm’s close involvement with world-beating mobile CPU products is something special Can be exciting development. The scope of portable computing – developments that could potentially shape the future of the Switch brand.