Spoffle, you really think that Sony didn't go to some kind of tendering process/negotiation with NVidia and instead only went to ATi?
Only an idiot would do this and not literally play each vendor off against the other on price and spec.
I work in B2B IT, I work on tenders amongst other things and I know how these type of businesses work.
Who's ATi?
I'm not disputing that, I also know the process. The real question is, if there were only 2 companies that could do what you needed realistically, would you really go through the tendering process if one of them was constantly causing you problems and costing you money? Personally, I don't buy that they would, because this isn't generally a typical situation that occurs.
Why is that a problem for you? theres almost always someone who knows more about a subject - I almost always have a good understanding of anything I talk about but a lot comes from self learning so I might not have the same understanding as someone with a formal education in the subject - which not unusually leads to situations where what I'm actually meaning is right but the way I'm putting it isn't always correct and sometimes clumsy use of the terminology through lack of formal training in the subject leads people better qualified in the subject to mis-understand what I'm actually saying. Most don't make a deal of it and post something constructive I can learn from a few like youself for some reason are bothered by it and it ends up littering the forum with rubbish posts.
PS despite what your trying to imply - I rarely post about something I don't have a reasonable level of actual experience with i.e. heres a couple of things I coded to gain experience of programming physics:
http://www.youtube.com/watch?v=MJfj_mnoAwg
http://www.youtube.com/watch?v=XSPm5d8GwLI
I've also built my own DirectX7 based game engine from scratch back in the day also a map I created for COD4
http://forum.i3d.net/modifications-cod4/25564-cod4-map-woddrr.html - I've also got maps or work I've done included in idsoftware titles i.e. sidrial - and a ton more but I'll wait for the next time you accuse me of not knowing what I'm talking about before elaborating.
It's not so much of a problem, I find it bizarre. I'm not disputing that you actually have experience in the topics you talk about, I think it's actually obvious that you do have experience.
The the fact that you have experience I find it so bizarre, because despite your experience you come out with a lot what looks to be rubbish to be blunt about it, the type of stuff that people who don't have a clue would say.
So basically, because you have the experience, you should know better.
I do think we need to consider timescales here too. Sony for whatever reasons wants to launch the PS4 this year.
Jaguar is already entering production now,and moreover there is another important factor here. It is already made on the same 28NM TSMC process like the AMD and Nvidia GPUs. This would probably mean,Sony knows it will be a credible design to make on the TSMC 28NM process,as part of an SOC. There is less risk for them. Even if PD was a potential design to be used,it would have to made to work on a very different process node.
Edit!!
Poor yields on the Cell BE used in the PS3,was one of the reasons it cost so much:
http://www.dailytech.com/IBM+Says+Its+Lucky+to+Get+10+to+20+Yields+on+Cell+Processor/article3295.htm
I was going to touch on this too before you posted it.
Sony aren't going with any custom chips here, they have literally chosen off the shelf parts, something they wouldn't be able to do with nVidia because nVidia's 660/660Ti that competes with the 7850/7870 is based on GK104, a 300mm² part whereas the 7850/70 are a 200mm² part.
Clearly a 300mm² GPU isn't ideal to have in a console, and for nVidia to be able to supply a 200mm² GPU with enough performance would have likely required a custom chip as I can't see them having any interest in GK107, the performance wouldn't be there without a big bump to clock speeds.