Nvidia and TMSC are already at capacity trying to keep up with demand for AI chips. Btw Nvidia was inside the original OG Xbox so they've been in this space before but obviously Nvidia thought there was better business opportunities elsewhere. Great decision by Nvidia not to waste resources on the console space considering they are the biggest company in the world.
Just imagine if NVIDIA's truly threatened (an NVIDIA's hardware home console... 🤔) to enter this segment (the Nintendo Switch line doesn't count, well, because NINTENDO has always had a history of not having the most powerful hardware... ever)... it would be... game over for AMD/Intel!
The PS6 and PS handheld (or PS6 handheld) are said to come with an AMD APU codenamed Orion and Canis respectively. The next Xbox is expected to run the AMD Magnus APU.