HardOCP News
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According to this article, NVIDIA's Senior VP of content and technology says his company was not willing to work with Sony at "the prices they were willing to pay."
"I'm sure there was a negotiation that went on," Tony Tamasi, Senior VP of content and technology at Nvidia told GameSpot, "and we came to the conclusion that we didn't want to do the business at the price those guys were willing to pay."