It's Official ATi will support Xbox 2

Al_CapownAl_Capown Indiana
edited September 2003 in Gaming
http://www.thestreet.com/_yahoo/markets/marketfeatures/10108136.html

In a body blow to Nvidia (NVDA:Nasdaq - commentary - research), rival graphics-chip designer ATI Technologies (ATYT:Nasdaq - commentary - research) disclosed an agreement Thursday to provide custom technologies for Microsoft's (MSFT:Nasdaq - commentary - research) Xbox game console.

The news sent ATI up 75 cents, or 6%, to $13 on the Instinet premarket session.


Microsoft said it made the decision "after reviewing the top graphics technologies in development and determining that ATI's technical vision fits perfectly with the future direction of Xbox." Nvidia had been the major supplier of Xbox technology and said the console accounted for 19% of its $460 million in second-quarter sales.

The news exacerbated a slide in Nvidia (NVDA:Nasdaq - commentary - research) that began two weeks ago when the company said manufacturing problems with a new chip would leave second-quarter revenue at the low end of guidance. The company further lowered its earnings outlook when it reported its second quarter last week.

From a high of $25.20 this time last month, Nvidia's shares have steadily fallen. They recently changed hands on the Instinet premarket session for $15.85, down 93 cents, or 5.5%, from Wednesday's 4 p.m. EDT close.

Comments

  • edited August 2003
    Yep, its all true, if you want to read the official press release, its been at www.icronticgames.com for a while now, certainly its all interesting stuff and another body blow for Nvidia..
  • GHoosdumGHoosdum Icrontian
    edited August 2003
    Hmm... maybe ATi will buy nVidia someday and start using that horrible 3dFX technology, and then ATi will fail too just like nVidia is starting to do... boy that 3dFX technology must be a bundle of crap! ;)
  • FormFactorFormFactor At the core of forgotten
    edited September 2003
    this is great news!! Radeon cards display a lot better picture than geforce cards IMHO. I havnt seen the FX5900, but that will be a sweetass console it sounds like.


    Anyone know which ati chip they will use?
  • MancabusMancabus Charlottesville, VA
    edited September 2003
    FormFactor said
    this is great news!! Radeon cards display a lot better picture than geforce cards IMHO. I havnt seen the FX5900, but that will be a sweetass console it sounds like.


    Anyone know which ati chip they will use?

    Uhh, they will most likely use a proprietary chip, like they did with the gamecube, and sony does with the playstation series. Of course that is 2 to 3 years away now, so don't get your hopes up too high. PS3 will be out by then, and Nintendo may put out another system, and who knows which will be the top dog by then.
  • pseudonympseudonym Michigan Icrontian
    edited September 2003
    GHoosdum said
    Hmm... maybe ATi will buy nVidia someday and start using that horrible 3dFX technology, and then ATi will fail too just like nVidia is starting to do... boy that 3dFX technology must be a bundle of crap! ;)

    BLASPHEMY!!!! Don't make me come after you!! My Monster and Dual Voodoo 2s will always win in the end!!!!!
  • SimGuySimGuy Ottawa, Canada
    edited September 2003
    I suppose it all depends on what Microsoft wants to see in their X-Box2 and when the product is to be delivered.

    If MS wants it within the next year, we could see the XB2 using a proprietary, enhanced derivative of the R420 series of VPU's from ATI (the next generation Radeon). I would think that ATI would operate along the same lines with the XB2 as NVidia did with their GPU for the XB1.

    NVidia developed the NV20 (GeForce 3) technology for the PC and then optimized and ported it over to the XB1.

    Ahh, dual Voodoo 2's. Those were the days, when 3DFX and glide ruled our lives. :D

    //Edit: Might be a good time to purchase some ATI stock ("ATY" on the Toronto Stock Exchange).
  • GnomeWizarddGnomeWizardd Member 4 Life Akron, PA Icrontian
    edited September 2003
    Nvidia needs to use 3dfx glide technology to get back in the game
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