Sony Computer Entertainment Inc. and NVIDIA have announced that they will be working together on a new project to create a GPU for Sony's next generation entertainment system.

Under a broad, multi-year, royalty-bearing agreement, both companies are collaborating on jointly developing a custom graphics processing unit incorporating NVIDIA's next-generation GeForce technology with Sony's Cell processor based next-generation computer entertainment systems. The goal is to create an entertainment system that is second to none.

"In the future, the experience of computer entertainment systems and broadband-ready PCs will be fused together to generate and transfer multi-streams of rich content simultaneously. In this sense, we have found the best way to integrate the state-of-the-art technologies from NVIDIA and SCEI."