The way it’s meant Tegra to be played
When Jen-Hsun Huang mentions Tegra 2, he talks about it like this is the one and only solution, almost as if “small” players like Qualcomm, Texas Instruments and many others don’t even exist. It is almost like Nvidia doesn't see them as competition.
Qualcomm did a good job with its Snapdragon chip that ended up in almost every higher end phone that doesn’t come from Apple and it will definitely be a tough competitor for Nvidia’s Tegra 2.
But there is a hope for Tegra, at least Nvidia hopes so, and its plan is to invest a lot in Tegra game development relations. Nvidia’s is already trying to show what Tegra 2 can do, and hoping that with many tablet design wins and "super phones" we might see some games made for Tegra 2.
It won’t stop as Tegra 3 and 4 will end up with much better graphics capabilities and will potentially stand a better chance against the competition. Nvidia is good in convincing developers to go their way, but the big question that remains unanswered is the importance of gaming on tablet devices. Of course, only the future will tell if it will take off.