Nvidia’s 32GB LTE Version Of The Shield Tablet To Increase Its Competitiveness In The Android Gaming Market

September 18th, 2014 by Trefis Team
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Leading graphics processors manufacturer, Nvidia (NASDAQ:NVDA) launched the 32GB 4G LTE version of its Shield tablet earlier this week. Nvidia introduced the Shield tablet (16 Gb and WiFi) in July this year for $299. Designed especially for video games, the tablet is the first to offer gamers the ability to stream games from a PC desktop or notebook, from anywhere in the home using NVIDIA GameStream technology as well as third-party services like Twitch. Offering twice the storage, the 32Gb Shield tablet enables gamers to enjoy more games, movies music and photos for an extra $100.

games, more movies, music and photos, and more of your favorite apps. – See more at: http://blogs.nvidia.com/blog/2014/09/16/shield-32gb-lte-preorders/#sthash.N8qfBF2E.dpuf
enjoy more games, more movies, music and photos, and more of your favorite apps. – See more at: http://blogs.nvidia.com/blog/2014/09/16/shield-32gb-lte-preorders/#sthash.N8qfBF2E.dpuf
enjoy more games, more movies, music and photos, and more of your favorite apps. – See more at: http://blogs.nvidia.com/blog/2014/09/16/shield-32gb-lte-preorders/#sthash.N8qfBF2E.dpuf 

enjoy more games, more movies, music and photos, and more of your favorite apps. – See more at: http://blogs.nvidia.com/blog/2014/09/16/shield-32gb-lte-preorders/#sthash.N8qfBF2E.dpuf
enjoy more games, more movies, music and photos, and more of your favorite apps. – See more at: http://blogs.nvidia.com/blog/2014/09/16/shield-32gb-lte-preorders/#sthash.N8qfBF2E.dpuf

Powered by the world’s most advanced mobile processor, the 192-core Tegra K1, the SHIELD tablet offers unprecedented graphics and performance in an elegant, gamer-ready tablet. The 32Gb LTE version is now open for per-orders at Nvidia’s official Shield website as well as retailers like Amazon, Best Buy, Fry’s Electronics, GameStop, Micro Center, Newegg, and Tiger Direct. It will start shipping on September 30th in the United States and Europe. Nvidia also announced three new Android games optimized for the Shield tablet – Beach Buggy Racing, BombSquad and Broadsword: Age of Chivalry.

Nvidia marked its maiden attempt as a gaming hardware provider with the launch of Shield Portable in July 2013. The Shield handheld device was built around the Tegra 4 processor. Although Nvidia announced last year that the Shield is gaining traction in the market, it has not provided any significant update on its sell-through in the last few quarters.  By extending the Shield family, the company has underlined its focus on tapping growth in the Android gaming market. It claims that the press reaction for the Shield tablet has been great so far.

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Nvidia Eyes The Android Gaming Market

The gaming hardware market generated sales of $23.6 billion in 2012 and the global gaming market is expected to exceed $30 billion by 2015. [1] Research firm Newzoo estimates that there are 1.6 billion gamers in the world today and many of them are looking to buy a tablet. [2]

Nvidia aims to focus on developing the Android gaming market. Android is the world’s largest operating system platform, and the company believes that over time it will also be one of the world’s largest gaming platforms. Nvidia intends to leverage the capability and expertise it has developed in the PC industry in the last 15 to 20 years for the Android gaming market. At present, there are over 400 games optimized for touch and the controller on Tegra and more and more are leveraging the power of Tegra K1. [2]

Gaming is one of the key growth drivers for Nvidia’s Tegra business, in addition to the mobile and automotive markets. The company derives about 13% of its valuation from the Tegra division, as per our estimate. We believe that Tegra processors revenue will reach close to $1.5 billion over our review period.

Our price estimate of $18.83 for Nvidia is in line with the current market price.

See our complete analysis for Nvidia

NVIDIA just announced that the 32GB LTE variant of the Shield is now available for pre-order. $399 buys the unlocked LTE tablet in its own right, but NVIDIA tells us that AT&T will be offering it for $299 on contract.
Notes:
  1. PC Gaming Hardware Market to Hit $23.6 Billion in 2012, Jon Peddie Research, May 3, 2012 [↩]
  2. Nvidia’s (NVDA) CEO Jen-Hsun Huang on Q2 2015 Results – Earnings Call Transcript, Seeking Alpha, August 7, 2014 [↩] [↩]