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Sources claim Nvidia?s mobile-centric system-on-a-chip, Tegra, will power the next Nintendo handheld

‘Nvidia to power new Nintendo DS’

Graphics chip giant Nvidia has won a highly lucrative contract that will see it provide technology for the next Nintendo handheld, inside sources claim.

Anonymous sources said to be close to the matter insist that the new Nintendo handheld – apparently set to be revealed late in 2010 – will be powered by Nvidia’s system-on-a-chip device, known as Tegra.

Tegra is an ARM-based processor with integrated Geforce graphics, and has been developed by Nvidia for use in smartphones and other mobile devices such as Microsoft’s Zune HD.

The rumoured Nintendo deal would add much weight to bold claims recently made by Nvidia CEO Jen-Hsun Huang.

In June, Huang left analysts dumbfounded by declaring that Tegra will account for as much as 50 per cent of Nvidia’s revenues in the next few years.

More on this story can be found on Develop.

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