“Industry analysts at American Technology Research have raised their Apple stock purchasing recommendations from ‘hold’ to ‘buy’ on their belief that NVIDIA has secured its place in the much anticipated device. They believe that NVIDIA’s entrance into the iPod can be viewed as a strong sign that Apple intends to support 3D on the video iPod, and they believe that this will translate into significant sales… ‘Based on our analysis, we believe Nvidia is designed into the next-generation vPod socket at the expense of Broadcom,’ said Satya Chillara, author of the report. ‘We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod,'” Ken Fisher reports for Ars Technica.
“If true, NVIDIA’s claim to the video iPod goldmine would be a major loss for Broadcom, which to date has supplied most of the iPod’s brains. Nevertheless, it must be noted that Chillara is not certain that 3D functionality is at the heart of the NVIDIA’s offering; it does stand to reason that NVIDIA’s main edge over Broadcom would rest in the company’s 3D prowess, which already extends to mobile phones, however,” Fisher reports.
“On the programming front, Apple appears to be investing in gaming development. The company has reportedly been in the market for game developers, and rumors back in May even indicated that the position was somehow related to the iTunes Music Store. Could Apple be selling Zuma and Wik: Fable of Souls for the iPod in a few short months? It’s all starting to add up to a real posibility,” Fisher reports.
Full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Gee, an iPod capable of real gaming (plus music, video, and the usual extras) wouldn’t be that successful, would it? 
Related article:
Report: Nvidia beats out Broadcom, wins inclusion in Apple’s ‘true’ video iPod due ‘first half 2007’ – July 18, 2006