NVIDIA’s ION platform combines a low power Intel Atom CPU and an NVIDIA GeForce 9400M GPU to provided decent graphics performance at a low price point and with low power consumption. But there’s low price, and then there’s low price. Because Intel normally bundles the Atom with its own integrated 945GSE chipset and GMA 950 graphics. But if you’re using the NVIDIA graphics solution you don’t need Intel’s chipset, which would save you some money if it weren’t for the fact that Intel is putting a higher price tag on the Atom CPU for customers who don’t want to purchase the whole kit and kaboodle.
In other words, OEMs that want to put together netbooks or nettops based on the NVIDIA ION platform not only have to pay for the NVIDIA graphics processor, but they have to pay higher prices for the Intel Atom processor, which drives up the price and could make ION based devices less competitive, even if they do offer better graphics performance than comparable systems.