Broadcom out, NVIDIA in. This seems to be the future of video iPod.

According to an analyst, NVIDIA won an auction for the next video iPod while the runner-up was Broadcom Corporation.

Until now, the video iPod used an mp3 processor from PortalPlayer (the same that lost the auction against Samsung) and a multimedia chip from Broadcom. If the news is true, NVIDIA will power the next vPod but no mention if the PortalPlayer chip will still be present or will be out too.

“Based on our analysis, we believe Nvidia is designed into the next-generation vPod socket at the expense of Broadcom,” said Satya Chillara, an analyst with American Technology Research Inc. (Greenwich, Conn.), in a new report.

“We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod,” he said.

This change of manufacturers for the next vPod made NVIDIA shares to switch from “hold” to “buy” and Broadcom shares form “buy” to “hold”. The specialists expect Broadcom to lower the revenues with about $50 to $70 million per quarter.

So mister Jobs chose NVIDIA. What we will change and will we see the new vPod before Christmas to compete with Microsoft Zune or will it be released only in Q1 2007?