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Submitted by Chris Leyton on January 1 1970 - 01:00

Microsoft seek to reduce the cost of Xbox chips.

Microsoft and nVidia are at war over the Xbox, in this <a href= http://ccbn.tenkwizard.com/filing.php?repo=tenk&ipage=1724853&doc=1&total=3&TK=nvda&CK=1045810&FC=000000&SC=ON&LK=0000FF&AL=FF0000&VL=800080>SEC filing</a>, nVidia discloses that Microsoft are seeking damages for violations of the agreement. Microsoft is seeking to reduce the cost of the original $200million agreement, which accounts to $13million as of January 27th, money that nVidia claims to have already spent. <br /> <br /> The move is believed to try and cut costs after the recent Xbox price cuts in Europe and Australia, where the machine is now selling at a significant loss. If nVidia does not prevail in the arbitration it’s believed that this will have an impact on nVidia other operations. <br /> <br /> In other related news the price reduction has seen Xbox’s fly off the shelves in Australia, a Toys ‘R’ Us representative claims that in the weekend after the price cut, they sold 2.5 times as many units as they did during the launch week! No word on European sales as of yet, however we’ll bring you the latest as soon as we know. <br />

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