QualcommIn a clear sign that gaming is becoming more important for semiconductor companies, Qualcomm introduced Wednesday a Snapdragon G3x microchip for handheld consoles.

Qualcomm announced it wants to be part of the hot gaming marketplace where AMD (and Nvidia) power consoles. MicrosoftSony and Nintendo see huge growth.

Razer, an electronics peripheral and computer manufacturer, will release the chip in a mobile developer device. Although it looks like a Nintendo Switch console, the console runs Android games. This console features a screen of 6.65 inches and a controller.

Qualcomm is the largest supplier of the chips that power Android smartphones made by Samsung and Xiaomi. Qualcomm had $7.7 billion worth of chip sales for its fiscal 2021. Of that, 60% was for handsets.

High-end smartphones are becoming increasingly attractive to gamers because they can use more power and provide smoother, more realistic gaming.

For other semiconductor companies, producing chips for console game makers is a very lucrative business.

AMDFor example, the processor is at the heart of consoles such as the SonyMicrosoft Series X and Playstation 5, and company officials said strong gaming console demand led to higher than expected revenue in the last quarter. AMD will also provide the processor for Steam Deck, the handheld gaming console that is due to be released next year.

NvidiaThe processor is the heart of Nintendo Switch’s Nintendo Switch. It has been sold more than 92 million units ever since its debut in 2016.

RazerThe product was designed for programmers and game developers, but will likely resemble future commercial products by Qualcomm customers. The preview provides an overview of technologies Qualcomm will support next-generation portable consoles. This includes streaming via webcams and 5G connections.