Part of the reason I never bothered with them - IMHO a company who heavily bases their hiring choices on school grades is not someone I want to work for. It betrays a belief in bad/unreliable indicators/metrics.
Be careful not to emphasize it too much though, lest it seem like you're making excuses. Maybe the person considering you for a job did the same thing.
The best hackers (rather, the ones you'd want to work with) tended to fall in the middle of the pack. Decent marks, not great. Didn't spend their days trying to ace the next exam and spent a lot of time hacking on cool projects instead.
My own experience in college is that marks in the middle of the pack made the best employees, and in fact nowadays an extremely high GPA is a yellow flag when I'm reviewing resumes (though obviously, not a disqualifier at all).
Keep in mind at this school 80%+ would put you in the top 10-15% of all marks. I'm not against filtering for low marks, but in this case NVidia set their sights on the top 10-15% of the student population and disqualified everyone else as a matter of course. IMHO a dumb move that unnecessarily turned away a lot of qualified people.
I don't work at Nvidia, but working in the hardware field things go a bit slower. You need people who pay attention to detail and follow the process to a T to avoid costly mistakes and rework. Thats why "people who could put up with the bullshit that it took to get into the top 15%" and "people who are intelligent enough to design chips at a high level and disciplined to follow the process to avoid blowing hundreds of thousands of a dollars per mistake" have more cross over than high GPA and good ruby on rails hacker. It is just a different mindset and a different set of economics to be building slow iterating hardware vs quick iterating software.
And just like for production software, you have to test your code to death to make sure there isn't any bug. For instance, we usually booted Linux on CPUs to make sure nothing would go wrong (and things would usually go wrong around cycle 1,000,000,000! Debug that)
The brightest kids I knew got 80% without trying. If you're bright enough to work at NVidia and can't get 80%, you're lazy. I'm sure they missed some talent but saved a ton of time not having to interview mediocre students.
I'm not nitpicking, I just took the 80% to mean 2.7 as well.
I also believe that grades correspond better with ability in chip design then it does in programming. (I've actually done both. Chip design is fun, but I'm addicted to very short code-compile-test cycles.)
Some companies though, will refuse to look at a resume, regardless of how richly experienced it may be, simply based on the fact that you failed to hit an arbitrary bar during college. To me this is lunacy.
Candidates with significant work experience - even ones still in college - are in high demand everywhere and have a lot of choices. Even a non-ninja-rockstar-guru like me had internship offers piling up outside the door. In this case it would benefit the company to not put things into job ads that don't actually matter.
If you were putting yourself through college, paying as you go, then as long as you managed a low "B" I'll probably cut you a break. You'll get a fair shot.
If you decide to skip college and throw yourself into work, I'm not going to hold it against you. That being my background, I generally see it as a plus.
If you went to college on someone else's dime, your parent's or the bank's, and have such a weak work ethic you couldn't be bothered to apply yourself then odds are you aren't going to bring anything special to the table at the work-place.
I'm sure there are a lot of cases where it's not fair, but there's few things that annoy me more than an inflated sense of entitlement, and for good reason. In my experience it's a great indicator of a poor performing employee. Generally with drama, generally thinking a lot of themselves despite negligible contributions to the business.
I wasn't blessed with an unusually powerful intellect. I knew guys in college who would just get the course material after a couple of hours. For the rest of us earning marks meant many dozens of hours pounding a book, and at that point you run across the very real limitation of having 24 hours in a day.
The vast majority of college students have to make a very real tradeoff - marks vs. practical experience. For me, I chose not to invest dozens more hours to eke out 10% more on the exam, and instead chose to put it into hacking on relevant projects that taught me new technologies.
My marks were certainly not poor, they were perhaps 1 std. deviation above average. Decent, not great. Could they have been higher? Sure, but I'm no ubermensch, it would've meant a large sacrifice in another area.
If that's your image of a student not applying himself, then guilty as charged. I for one don't regret it for one second - after all, I hacked out a lot of stuff in those 4 and a half years (paid my way through schools by not having summers and staggering internships between semesters instead), and had a number of offered before graduating thanks to it. I'd hate to imagine my position if I'd just stuck to acing the school work and never hacking anything on my own.
Again, this goes back to my original point: companies that weigh marks heavily in recruitment are making a lot of fundamentally unreliable assumptions and rejecting candidates (before interviews, even) on what is IMHO a weak correlation to on-the-job performance. With the exception of a small minority of extremely smart people, someone with top marks had to sacrifice something major to get there, and in my experience that "something" is often something that gravely impacts employability.
(I was a software intern, but the job I had applied to asked for 80% as well.)
I worked for NVIDIA in a key group on key projects, and I never even finished my university degree (though my grades were very good). To make a general and hopefully obvious statement, if you're hiring someone fresh out of school with a bachelor's degree but no real-world accomplishments, you have to judge them by some objective measure, and grades are part of that. If you're dealing with someone with real-world accomplishments, it's a completely different matter.
When interviewing people during my time there, I personally never so much as glanced at their GPAs. But then again our group generally only hired people who had (and would soon have) Ph.D. degrees or experienced hackers whose past work spoke for itself. I imagine if you're hiring for entry-level positions, you need a very different approach just for the first round of culling due to the sheer volume of applicants.
NVIDIA was also the only company I knew of that required candidates to take a written exam on the spot at the career fair. Scary stuff. The problem is there are too many applicants to look at so any kind of filter (administered fairly) is better than none at all.