ATI will be the graphics chip provider for Xbox 2!
 

Found on Yahoo!

Jeremy

Interesting news, to say the least. Now I'm wondering who's gonna be developing the chipset for PS3--is Sony going to do it inhouse or are they gonna sub-contract?

So now there are ATI chips in the GC and now the XBox2... weird...

In a related story, Nintendo strikes a deal with Nvidia to develop their next generation gaming console graphics engine.

I thought I read IBM was doing the manufacture, but I can't find the story.

I believe IBM, Sony, and maybe even someone else are working on the new chip technology together. IBM will be looking to use this technology in more than PS3's!!

Toshiba, IBM and Sony are developing the cell processor.

I'll be the first to say: What or Who the hell is ATI?

ATI didn't make the graphics chip in the GC - they just bought the company that made them after the fact but before the GC started shipping.

Sucks for Nvidia. Their stock has been consistantly beating street since they started supplying the Xbox. If I recall correctly I think they were $.30 over projections for this quarter.

Gonna be some unhappy stockholders if ATI steals that gig.

IF?? :)

Nvidia still "OWNS" the PC market along the lines of gaming graphics cards. So I wouldnt sweat it if I were them and stock holders in the know already see that Nvidia has more Gamer appeal as a PC graphics card company. Wait till HL2 comes out and ATI takes the crowds with them.. That's when the stock holders wont be happy. ;)

Which is a shame considering ATI has put out far better cards the last year or so. Now if Microsoft will go with AMD for the processors :)

I agree Fumanstan. My nvidia card has been giving me nothing but headaches since my move. I had to replace it because it wasn't working right after the move and then the new one I got had so much issues with the drivers (Stupid MSI). I plan on moving on to ATI's latest card when HL2 comes around and I'm happy to use an AMD processor. :)

I'm not disappointed we lost out to ATI. To be honest, the first XBOX was a headache to everyone involved. It doesn't help that sales have been underwhelming.

The only real good thing to come out of it was it allowed us to design the nForce platform, something we may not have been able to do had we not won the XBOX deal.

ATI now has the license to build integrated platforms using the 800MHz Intel P4 bus, something NVIDIA doesn't have; probably one of the major reasons MSFT went with ATI.

I think this will be good for NVIDIA as it will allow us to concentrate on developing our next generation GPUs rather than devoting a lot of time and energy to MSFT.

The last 3 gaming PCs I've built for clients have all had ATI chips in them by request.

The Xbox counted for as much as 20% of nVidia sales revenue.
No matter how they try to spin it, this is not good news for nVidia.

Yeah - Microsoft got hosed on that deal - they pay the same price for nvidia graphics chips today as they paid for them a year ago and since day 1.