Philips invested in a 'FX chip' into a gaming module to upgrade CD-i with 3D graphics in 1992-1993, developed by Argonaut. At one point there was talk of adding a "game cartridge" with some sprite facilities and graphics coprocessing, not unlike the Digital Video Cartridge (it would have gone in the same slot which is actually a general purpose system bus interface), but this never happened. The project was unfortunately cancelled by Philips but it left Argonaut with the rights to do something else with the FX chip developments. Now, we discovered that the FX chip that was in enhanced SNES cartridges has to do more with Philips than we thought before. I was triggered when another CD-i developer told us this:
With the FX Chip Interactive Dreams found confirmation that Philips did fund the project but left on good terms with Argonaut simply cancelling a business arrangement which Argonaut would in the end have any rights to anyway so the SNES FX Chip is born.
It's quite a revelation that the project actually started as an upgrade chip for the CD-i player and not exclusively as a SNES chip!
At the time they probably didn't want to taint the power they obviously wanted to promote by relegating it to an upgrade for a backwater system like the CD-i!
The next chip designed by Argonaut for Philips was not intended as another upgrade for the CD-i player but was in fact created for the second generation of CD-i units. By all accounts it would have outstripped the performance of playstation! This happened after the FX Chip was created (1995-1996) and was the third chip created by Argonaut for Philips. Pretty revelatory stuff!
[Thanks, Jess, cdifan, Devin, Chris, John and a few who prefer to stay anonymous]