Nvidia passed on its hardware being used in the PlayStation 4 due to the “opportunity cost.”
“I’m sure there was a negotiation that went on,” Tony Tamasi, Senior VP of content and technology at Nvidia told GameSpot, “and we came to the conclusion that we didn’t want to do the business at the price those guys were willing to pay.”
AMD (which bought ATI several years ago) provides the graphics hardware used in the forthcoming Sony console.