Tegra is cool, and I love my Zune HD as it loads songs much faster then a Ipod Touch. But Nvidia is a GPU company, thats what they do. Sure they have made chip-sets, good ones too, back in the my AMD FX Nvidia was the only chip set I would use. They no longer can make chip sets for the big markets, Ion has more or less failed due to how Intel is pricing Atom and the only point of Ion is to say you can "kinda" play games on it and maybe watch a blue-ray if you can find a dual core Ion box, which is hard to find retail here in VT (we only have best buy).

I would expect the new MS phone to use Tegra so theres some money for Nvidia. If Nvida wants to turn in to Via and make net-book and cell phone chips, go them. But that won't help the market much when it comes to GPU pricing.