It turns out that while NVIDIA did not quite sell its soul to get its GPU into the first XBox, it did give up its right to go out unchaperoned.  As part of the deal Microsoft can block any large purchase of NVIDIA shares by another company.  If a company tries to purchase 30% or more of NVIDIA’s shares then had and still has Microsoft has the right to put kybosh on the deal.  A decade ago when the deal was first inked the agreement would have made a lot of sense to Microsoft; they were going to depend on NVIDIA’s GPU and did not want to have another company buy a majority share in NVIDIA to get a grip on Microsoft’s new gaming console.  This deal makes NVIDIA rather unattractive to many companies as the investment of time and money necessary to set up a large deal could be utterly wasted if Microsoft decides it doesn’t like the look of NVIDIA’s new bedmate.  The Inquirer has more here, and are currently awaiting a response to the article from Microsoft.

"AN UNLIKELY BETROTHAL between Microsoft and Nvidia has been uncovered that gives Microsoft the right of first and last refusal to buy Nvidia.

Microsoft entered into an agreement with Nvidia back in 2000 when the chip design outfit was brought in to work on the GPU of what would then become Microsoft’s Xbox. That in itself isn’t particularly surprising, but Information Week dug up a 10K filing with the Securities and Exchanges Commission (SEC) in which Nvidia reported that Microsoft had first and last rights of refusal should a third party make an offer to buy 30 per cent or more of Nvidia’s shares."

Here is some more Tech News from around the web:

Tech Talk