Nvidia has strengthend its commitment in the portable gaming market by acquiring mobile technology specialist PortalPlayer, for US $357 million (EUR 279 million).
PortalPlayer currently provides software, firmware and semiconductors for a range of personal media players.
"With this acquisition, we are combing the two essential technologies of next-generation PMPs, PDAs, portable game players and phones: PortalPlayer's innovative Application Processor technology and Nvidia's industry-leading GPU technology," said Jen-Hsun Huang, president of Nvidia.
"With the products created through this combination, we intend to drive the next digital revolution, where the mobile device becomes our most personal computer," he added.
Nvidia's handheld technology, which combines high-quality graphics, TV and video can currently be found in a range of mobile media devices including phone handsets from manufacturers including Motorola, Samsung and Sony Ericsson.
"We have spent the past several months extensively exploring our strategic options," revealed Richard Sanquini, chairman of the PortalPlayer board.
"We feel the advantages offered by the Nvidia acquisition are the most compelling, and that our customers and employees will benefit from Nvidia's strong position in handheld GPU technologies and its vast resources and global reach," he added.