Sony offered Nvidia the chance to manufacture some of the PS4's components, the chip manufacturer claims.
It turned down the opportunity, however, doe to the proposed costs.
"I'm sure there was a negotiation that went on," Nvidia's senior VP of content and technology Tony Tamasi told GameSpot. "We came to the conclusion that we didn't want to do the business at the price those guys were willing to pay.
"Having been through the original Xbox and PS3, we understand the economics of [console development] and the trade offs.
"We're building a whole bunch of stuff and we had to look at console business as an opportunity cost. If we say, did a console, what other piece of our business would we put on hold to chase after that?
"In the end, you only have so many engineers and so much capability, and if you're going to go off and do chips for Sony or Microsoft, then that's probably a chip that you're not doing for some other portion of your business. And at least in the case of Sony and Nvidia, in terms of PS4, AMD has the business and Nvidia doesn't. We'll see how that plays out from a business perspective I guess. It's clearly not a technology thing."
Nvidia rival AMD is supplying the key components for the PS4 and, if rumour is to be believed, the Next Xbox.