CES Product Announcements:
NVIDIA unveiled several products during CES, including the Tegra 4 mobile processor and the GeForce GTX 660 Ti graphics card.

Visual Computing Vision:
NVIDIA’s strategy focuses on expanding its visual computing capabilities across multiple platforms and devices to enable users to enjoy high-quality graphics on a wide range of devices.

Three Key Areas of Focus:
NVIDIA highlighted three core areas of focus: Creating beautiful computer graphics technology through advancements in its GeForce and Tegra processors. Removing device restrictions by making exceptional graphics accessible across platforms. Enabling developers to create innovative applications through simple tools and a developer-friendly ecosystem.

Tegra 4 Mobile Processor:
NVIDIA announced the Tegra 4, the most advanced mobile processor, boasting superior graphics capabilities for gaming and visual experiences. Tegra 4 features low power consumption, enabling longer battery life while delivering exceptional performance.

GeForce GTX 660 Ti Graphics Card:
The GeForce GTX 660 Ti, with its GK106 chip, provides exceptional performance and power efficiency for gaming enthusiasts. It offers increased speed and bandwidth compared to previous-generation graphics cards, enhancing the overall gaming experience.

Transforming the Gaming Experience:
NVIDIA’s goal is to shift the boundaries of gaming, allowing players to experience stunning graphics, immersive gameplay, and innovative features.

Developer-Friendly Ecosystem:
NVIDIA aims to provide developers with user-friendly tools and a supportive ecosystem to facilitate the creation of cutting-edge applications and games.

Always-On HDR:
Tegra 4 revolutionizes photography with a capability that keeps HDR always on, eliminating the need to manually switch modes.

Computational Photography:
HDR typically involves taking two shots, overexposed and underexposed, then fusing and tone mapping them computationally. Tegra 4 uses its GPU to perform this process quickly, enabling HDR photos in the same time as a single regular shot.

Benefits of Always-On HDR:
Flash HDR: HDR photography with flash becomes possible, addressing the challenges of traditional HDR in bright scenes. Burst mode with HDR: Tegra 4 supports HDR for burst photography. HDR for video: HDR can be used continuously for video recording.

Advantages of Native Computational Photography Support:
Native support in the processor enables more magical mobile devices. The combination of higher performance and new capabilities like HDR leads to more impressive and innovative devices.

The Unique Challenges of Cloud-Based Computer Graphics:
Traditional cloud computing struggles to deliver rich graphics due to the interactive nature of 3D graphics, requiring real-time frame computation. Every frame in 3D graphics is computed from scratch, unlike pre-recorded media like music or videos. The latency between input and response must be minimized for a seamless interactive experience.

NVIDIA’s Grid Server Appliance:
NVIDIA introduced the grid server appliance, a GPU-based solution designed specifically for streaming computer graphics in the cloud. The device features a Kepler GPU with dedicated streaming capabilities, allowing for dense deployment to support multiple users simultaneously. System software, hypervisors, and connection brokers facilitate seamless connections between the server and end-users. This fully integrated product enables users to essentially have a dedicated graphics computer in the cloud, streaming results to their devices.

Project Shield: An Android Gaming Device for the Cloud:
NVIDIA also showcased Project Shield, an Android-based device designed for gaming in the cloud. Shield is small, portable, and features pure Android, allowing access to all content from an Android phone or tablet. Unlike traditional game consoles, Shield offers an open platform with a variety of business models, including free, affordable, and premium games. It is optimized for gaming, complementing existing Android devices for reading, watching movies, or using social media.

Bridging the Gap Between Android and PC Gaming:
NVIDIA recognized the overlap between Android gamers and PC gamers. Shield’s unique capability allows users to enjoy cloud games from the grid, Android games from Tegra Zone, and even remotely stream PC games purchased on Steam. While Shield initially functioned solely as a receiver, the company hinted at the possibility of turning it into a server as well, leveraging its powerful hardware.

The Future of Connected Devices and Gaming:
NVIDIA envisions a future where various smart devices, including cameras, refrigerators, and dishwashers, will be connected to the cloud. Project Shield represents a pioneering step in this direction, offering an Android gaming device that seamlessly integrates with the cloud and the user’s Android ecosystem.

Open Platforms and Ubiquitous Gaming:
NVIDIA’s vision is to break down barriers and enable gamers to enjoy their favorite games on any screen, anywhere. Project SHIELD is a key device in this strategy, connecting all the pieces of NVIDIA’s vision. The goal is to make computer graphics as widely enjoyed as music and video.

Successful Demonstrations and Positive Reception:
The enthusiasm for Project SHIELD at the show exceeded expectations. Gamers and enthusiasts showed curiosity and excitement for the device’s potential. The positive reception is attributed to NVIDIA’s team of gamers who recognized the potential for a truly open gaming platform.

Question and Answer:
An attendee agrees that the strength of Project SHIELD lies in its open platform, contrasting it with the current closed and expensive model of gaming platforms. The attendee inquires about the potential shift in the future gaming business model towards a more open and accessible approach.

The Rise of 3D Graphics:
Introduction of 3D graphics in gaming consoles 25 years ago, driven by PlayStation 2. Creation of a new computer was necessary due to the lack of 3D capability in consumer computers.

Market Shift:
Game console market was initially small, with sales of 10 million units per year. Today, general-purpose computing devices with 3D graphics capability dominate, selling one billion units per year.

Reasons Against Game Console Subsidies:
No reason to invest heavily in consoles when general-purpose devices offer superior capability. Not feasible to spend more on a console than the combined R&D budget of general-purpose computers.

PC Gaming Advantage:
PC gaming is cost-effective because the device is already owned and serves multiple purposes. Game developers benefit from the large installed base of PCs, eliminating the need for console royalties.

Impact on Consumers:
The shift to open platforms lowers game prices, as the cost is shared among a larger user base. Consumers can explore new games without significant financial risk through free or virtual goods models.

Special Experiences on Consoles:
Microsoft Connect showcased the unique experiences possible on consoles, challenging to replicate on mobile devices. Nintendo, Sony, and Microsoft continue to innovate, creating novel experiences such as Kinect.

Open Platforms in the Future:
Open platforms with large installed bases are likely to dominate future gaming. This trend explains the rapid growth of PC gaming and its impact on the market landscape.

Teasing the Tegra 4’s Future:
Tegra 4 design wins have not been announced yet, as it is too early and customers are still in the process of building their devices. Tegra 4’s success is evident as NVIDIA’s Tegra business has grown significantly since last year. Market penetration has expanded, with China being a key focus area and success story for NVIDIA, and Windows devices running on Tegra in the WinRT market.

Beyond Mobile: Expanding Tegra’s Reach:
Tegra is versatile and used in various product categories, extending beyond mobile devices, including tablets, WinRT PCs, cars, and gaming consoles like NVIDIA Shield.

The LTE Modem and Mobile Success:
The absence of a 4G LTE modem was a barrier for broader Tegra mobile success outside China. NVIDIA announced and is sampling its software-defined radio architecture-based 4G LTE modem, developed through the acquisition of ICERA, which brings extensive expertise in modem technology.

Single-Chip Processor on the Horizon:
NVIDIA plans to introduce a single-chip processor that integrates the application processor and 4G LTE modem, codenamed “Gray,” which is expected to be sampled soon.

CUDA’s Arrival on Mobile:
CUDA will be integrated into mobile processors when the chip’s capabilities can support it, as it requires more computational power and transistors than OpenGL. NVIDIA aims to bring CUDA to Tegra as soon as it can add value to the platform.

NVIDIA Shield Lifecycle and Open Platform Benefits:
To maintain alignment with the annual Tegra release cycle, a new NVIDIA Shield device is anticipated every year. The open platform approach enables consumers to seamlessly upgrade between Shield versions, preserving data and functionality. This contrasts with dedicated game consoles that require separate updates for compatibility.

Expanding Phone Presence:
NVIDIA aims to expand its presence in the smartphone market across brands such as HTC, LG, Sony, and others. The availability of a 4G LTE modem is crucial for success in the smartphone segment, which NVIDIA is actively addressing with its 4G modem development. China’s market opportunity for NVIDIA, where 4G LTE is not yet prevalent, has enabled success with NVIDIA’s quad-core Tegra 4 processor.

New Architecture for Cloud Gaming:
NVIDIA’s Grid technology allows for 24 concurrent users per server, significantly reducing costs and improving quality compared to previous solutions. This enables affordable streaming services that can rival traditional video streaming costs.

Diverse Service Deployment:
NVIDIA plans to partner with various companies to deploy cloud gaming services through appliances that provide the necessary software stack. This strategy allows for diverse service offerings from different companies, such as web services, cable companies, telcos, and gaming companies.

Project Denver Update:
64-bit ARM architecture is now complete, enabling the development of Denver, NVIDIA’s ARM-based processor. Denver was delayed to ensure compatibility with ARM’s 64-bit V8 architecture. The goal is to extend the ARM ecosystem without creating a separate ecosystem.

SHIELD as a Dedicated Gaming Device:
SHIELD is designed as a dedicated Android gaming device to provide a specialized experience. It complements other devices like smartphones, tablets, and PCs, offering advantages such as a larger screen and dedicated gaming capabilities.

NVIDIA’s Relationship with Console Manufacturers:
NVIDIA views Sony and Apple as partners in the computer graphics technology realm. NVIDIA emphasizes that it is not competing with console manufacturers like Xbox and Nintendo but targeting a different market of Android users who enjoy gaming. NVIDIA aims to create a device that enhances the gaming experience for Android users without replacing popular console games like Mario and Halo.

Production and Pricing:
NVIDIA plans to begin production of SHIELD in Q2, aiming for a spring release. The device will be an NVIDIA-branded product and will be priced in line with other Android devices. Unlike subsidized consoles, the focus is on an affordable gaming device with free or very affordable games.