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ATI stock up big on XBOX rumor!

pahom

Junior Member
ATYT has gone up big today on the rumor of the contract with Microsoft to produce the XBOX2. The rumor has been quoted on CNBC and the dow newswire. NVDA is falling fast on the same rumor. If the rumor is true, the two stocks should continue to move towards each other. Very good news for ATI!
 
rumors by 1337 c0rp0r4t3 p33p5 to push up stock price, i seriously doubt that ati will make both nintendo next gen and micoro$ofts next gen, becuase their will probably be, conflicts of interest. it would be interesting to see nvidia make nintendo and ati to make microsoft. lol
 
Microsoft - Home entertainment centre (music/DVD/games/internet, you name it)
Nintendo - Games

It's like saying that the Gameboy and PDA's are in the same market almost.
Microsoft want an all encompassing device, like Sony is beginning to do, Nintendo supposedly are going to make a games console.

There is no real conflict of interest.
And yes, PDA's can play games 😛
 
Reuters says the rumor is from ATI, and is spreading from there, although microsoft has not said anything about it.

nVidia got a huge boost to their stock prices a few weeks ago, when microsoft announced their intentions to use the nv35 in the new xbox. Their stock shot up 29% in one day, and it continued to make headway for the last 3 weeks. Today it is down 7% trading at about 25 dollars per share. ATI is at about 7 dollars a share, and up about 7%. The Reuters article directly referenced the xbox2, and said the rumor also stated that microsoft dumped nVidia.

Im not gonna get too excited and sell all my nVidia stock based on a rumor. If it is true, then I would think it would be interesting having 2 gaming consoles using the same hardware.

On the other hand, keep in mind that ATI does not currently have a complete platform like nVidia. nVidia doesnt just build a graphics chip for the xbox, they build the WHOLE platform. Xbox just provides a bios, a hard drive, and a case. Well, they manufacture it somewhere too, but last I checked, ATI didnt have a motherboard chipset with high end sound and controllers built in. If microsoft is turning to them, then either ATI is going to break into the mobo market like nVidia did during production of the xbox, or MS will be using multiple sources and piecing the system together, which will definately up costs. So the rumor sounds unreasonable, but then again, MS was selling xbox's for a year at a loss of 80 dollar per unit, just to get into the market. Who knows where they will take it from here.

Perp
 
I didn't know nV built the Xb platform--I thought they just supplied the video chip, as nV doesn't do Intel MB's. Does Xb use nV's SoundStorm audio chip as well?

ATi, OTOH, does sell Intel MB's, though they don't offer sound cards. I wouldn't figure either ATi or nV would build a MB with integrated RAM, tho, as I didn't think either had the experience of Intel or AMD in that area. Interesting if nV does produce the MB, though....
 
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