Nvidia has revealed that Microsoft’s new Zune HD portable multimedia device will be the first to feature its new Tegra mobile Internet chip, reports PC World. Speaking at a press conference this week, Michael Rayfield, general manager of the mobile business unit at Nvidia, said that other Tegra-based devices, including smartphones, mobile Internet devices and netbooks would launch later this year. The devices will combine advanced graphics, better battery life and always-on Internet access, Rayfield said. The Zune HD will be powered by the Tegra APX 2600 chip, which has an Arm11-based processor core, a GeForce graphics core and other components. Microsoft is marketing Zune HD as a mobile Internet device with mobile networking and a Web browser.

Nvidia is hoping that the Tegra processor – which was first announced last year – will be a major revenue generator in the future as part of the company’s strategy to diversify into mobile. Last week, the company – currently a specialist in graphics chips – reported revenue of US$776.5 million for its second fiscal quarter, a fall from US$892.6 million during the same period last year. Nvidia’s Rayfield says the firm has around 50 Tegra design wins in place to date. Nvidia has already demonstrated several such devices, including a mobile Internet device priced at US$99. Samsung has also said that it plans to use Tegra in a future netbook.