Nvidia’s Shield targets gaming space
In July 2013, Nvidia (NVDA) launched Shield. This was Nvidia’s maiden attempt to expand its presence in the gaming hardware market.
Powered by Tegra 4, Shield is a Google (GOOGL) Android-based portable gaming console that offers PC game streaming features. However, the unique feature of Shield that sets it apart from its peers is that it is the only device that plays Android games with an integrated game pad.
Microsoft (MSFT) Xbox, Sony, and Nintendo are leading players in the console space.
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In 4Q15, Nvidia’s Tegra processors powered Google Nexus 9 and the Shield Tablet. Nvidia stated that several media outlets recommended Shield in their holiday gift-giving guides.
In an effort to provide a gaming experience for tablets, Shield upgraded to Android 5.0 Lollipop—Google’s latest operating system (or OS)—in 4Q15. Through the launch of Shield, Nvidia intends to develop the Android gaming market.
As the chart above shows, Android is the world’s largest operating system platform. Nvidia believes that it will capture the Android gaming space through Shield. Thus, the company aims to become one of the world’s largest gaming platforms. Nvidia plans to leverage its expertise in the Android gaming market through the capabilities that the company has developed over the years in the PC industry.