Now, the Tegra seems to have finally found its first win in the handheld device arena. The new HD Zune from Microsoft (MSFT - Get Report) will be powered by the Tegra chip, says Rayfield. The Zune multimedia device is expected to arrive this fall.
Nvidia also expects a slew of mini computing devices or MIDs coming to the market late this year and early next year. These are sub-netbook sized laptops that will sell for under $200 or free with wireless service contracts. The devices run on Linux, or in Nvidia's case Microsoft Windows CE operating software.
The company's Tegra chips will cost manufacturers anywhere between the teens and $30, says Rayfield.
Nvidia has been knocking on this door to the mobile market for two years now, and there's little guarantee of success. Other chip giants like Qualcomm (QCOM - Get Report) and Texas Instruments (TXN - Get Report) stand as just two of the formidable obstacles.