Originally Sony had wanted to make their entire console with the Cell architecture. You'd have a cell for physics processing, a cell for texturing, a cell for lighting, etc...etc. Well things didn't quite turn out like Sony had hoped with the Cell and at 'the last minute' decided they needed a dedicated graphics processor; this is where Nvidia comes in. Nvidia, not being totally prepared for this, in crude terms, sort of just grabbed the nearest G70 they could find and squeezed it down to 90nm and called it a day. In comparison, Microsoft knew from day one; heck even before day one, that they would be using ATI for their next console and hence ATI had a much longer time to work on R500 for the Xbox 360 than Nvidia had to work on the RSX for PS3. Theoretically this could give MS the advantage on the graphics processing front, but as I always say with these next gen things; only time will tell.

The full article can be found at The Inquirer.