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Nvidia pins blame for disappointing Tegra revenue on Windows RT

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Microsoft Surface RT stock
Microsoft Surface RT stock

Microsoft isn't the only one feeling the pecuniary pain of Windows RT's market failure. Nvidia's latest earnings report has been accompanied by commentary from CEO Jen Hsun-Huang saying that a "particular platform just didn't do as well as we or frankly anybody in the industry had hoped." Though Huang doesn't name Windows RT explicitly, it's evident that it's the platform he's referring to, and he goes on to say that its disappointing sales have impacted Nvidia's bottom line to the tune of up to $300 million. What's more, Huang admits that "we don't expect it in the short term to come back."

The Surface RT tablet that Microsoft introduced a year ago, powered by Nvidia's Tegra 3, earned the company much praise for its excellent industrial design, but fell down in terms of performance and compatibility. At the time, it was a great point of pride for Huang and company as they were leading the way for future Windows machines powered by ARM processors instead of the traditional x86 chips. It appears that the company over-invested in its faith that Windows RT would be a success and is now paying the literal price for it.

"This particular platform just didn't do as well as we or frankly anybody in the industry had hoped."Nonetheless, Jen Hsun-Huang remains bullish about the future of ARM-powered Windows machines, having recently revealed that Nvidia plans to "bring it with the second-generation Surface." It's likely that his team will proceed with more caution than in their initial partnership with Microsoft on the first-gen tablet, but the goal of pushing Windows RT to success remains the same. Though it hasn't helped Nvidia in the short term, support for Microsoft's flagship operating system is critical to balancing out Nvidia's Tegra portfolio, which is at present heavily reliant on Android tablets and smartphones.