According to last quarter results, NVIDIA profits have diminished
nearly 80% compared to a year ago. Not a doubt the graphics giant was hit by the little success its previous generation of graphics cards had among consumers although strong OEM deals keep them away from the red, especially Microsoft's X-Box which contributed greatly to the company's revenue.
Analysts said the company lost market share to both ATI and Intel. In a research note released Thursday, Jon Peddie Research stated that Intel's share in the graphics chip market rose from 33 percent in the first quarter to 37.7 percent, while Nvidia's share declined from 27.2 percent to 23.2 percent. ATI lost market share--but only marginally, sinking from 24 percent to 23.2 percent.
While in the past couple of years ATI has been gaining ground to NVIDIA, reports show that Intel has kept at the top of the market thanks to integrated graphics, NVIDIA virtually lost no market share to ATI during the past year.