You may have noticed that the PS4 will be using an AMD graphics processor. So what made Sony choose AMD over Nvidia? Well, according to Tony Tamasi, Senior VP of content and technology at Nvidia, it was Nvidia’s choice. The graphics card giant “came to the conclusion that [they] didn't want to do business at the price those guys were willing to pay.”
"Having been through the original Xbox and PS3, we understand the economics of [console development] and the tradeoffs,” Tamasi said in a statement to GameSpot. “We're building a whole bunch of stuff, and we had to look at console business as an opportunity cost. If we say, did a console, what other piece of our business would we put on hold to chase after that?”
Tamasi went on to explain that developing a chip for Sony or Microsoft means that you won’t be using that chip in other areas of your business. “In the end, you only have so many engineers and so much capability,” Tamasi said. Tamasi also explained that this was not a technology issue. Nvidia could easily create chips that could run at PS4 spec. It’s merely a matter of business, and AMD has the business.