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ATI to supply next generation XBox

MoobyTheGoldenCalf

MoobyTheGoldenCalf

Golden Member
Didn't see one this posted yet.

http://biz.yahoo.com/rc/030814/tech_ati_microsoft_2.html

ATI wins Xbox deal, jumps in pre-market trade
Thursday August 14, 9:12 am ET
By Jeffrey Hodgson

TORONTO, Aug 14 (Reuters) - ATI Technologies Inc. (Toronto:ATY.TO - News) said on Thursday it struck a deal with Microsoft Corp. (NasdaqNM:MSFT - News) to develop graphics technology for its next generation Xbox video game console, dealing a blow to rival Nvidia Corp. (NasdaqNM:NVDA - News)

Shares of Markham, Ontario-based ATI, a leading graphics chip maker, surged in pre-market trading on the news, rising $1 to $13.25 on Instinet with more than a million shares traded. Nvidia's stock fell 78 cents to $16.

ATI Technologies Inc. said in a short statement that under the agreement with Microsoft, the world's largest software maker, it will develop custom, leading-edge graphics technologies for use in future Xbox products and services.

Graphics chips for the Xbox are currently provided by Nvidia. A spokesman for ATI would not confirm the agreement covers chips, but one analyst said he believed this was the case.

"We believe it does (cover chips). Microsoft is always particularly vague in terms of its press releases and not spilling too much, but we are very confident that this in fact represents the next generation of Xbox," said David Hodgson, an analyst with Dundee Securities.

"This agreement cements ATI's position as the prime graphics supplier for the future of the games industry," ATI Chief Executive K. Y. Ho said in a statement.


 
My console gaming days has been over since the first PS.....I thought the Xbox has ATI chips in it now though

shows how much I know
 
Not a huge surprise after the MS/Nvidia greed lawsuit about how to divy up the cash...

Lets hope ATI doesn't do the same 🙂
 
This could be interesting.

ArtX, which was purchased by ATI, created the Nintendo Gamecube GPU. They are reportedly working on a GPU for the next generation Nintendo console. We might have an ATI vs ATI GPU showdown in the next console race.
 
Originally posted by: sellmen
This could be interesting.

ArtX, which was purchased by ATI, created the Nintendo Gamecube GPU. They are reportedly working on a GPU for the next generation Nintendo console. We might have an ATI vs ATI GPU showdown in the next console race.
Click to expand...

LMAO how entertaining would that be 😉

"ATi has a come a long way since the introduction of the first Radeon, so far in fact that they've become bored of competing with nVidia, so they've decided to go to head to head with....themselves? 😕 What the hell Bob are you sure this is right?"
 
To be honest I'm tired of seeing new consoles every 2 or 3 years. All the consoles on the market is plenty of power in making great games with audio/video so why new ones? Is it about telling ppl they need more bits? I think everyone should spend more time on making great games instead all these systems. I get a lill tired of having to own all these systems to play games. In ways it turns me off from the gaming market!

All these companys should work on one console that puts foruth how advance all these companys can really make and then help fund gaming with a lill of there profits.

--Idoxash
 
Does anyone know why microsoft didn't choose nvidia?
I read sometime ago that microsoft is selling xbox at a loss (and making up the loss from licensing the game title) and nvidia was asked to sell their GPU (for xbox2 if they get the deal) at a loss too. Any truth to this?
 
I think this is microsofts spite doing the dealing. After the Nvidia bitter breakup, MS decided do go after the popular girls bitter rival.


See everything comes down to high school analogies.
 
Originally posted by: xerosleep
Wasn't making chips for the x-box what caused nvidia to slip behind?

Good bye ATI 😛
Click to expand...

Quite the contrary. XBox chip sales have been keeping nVidia's profit margin as high as it is. I know that someone not too long ago posted a financial report from nVidia stating what percentage of their money comes from what market (PC graphics, chipset, XBox chips, etc). Maybe someone knows what article I'm talking about and can post it again.
 
Shares of Markham, Ontario-based ATI, a leading graphics chip maker, surged in pre-market trading on the news, rising $1 to $13.25 on Instinet with more than a million shares traded. Nvidia's stock fell 78 cents to $16.
Click to expand...

Not rising FROM $1...

But damn..wouldn't it be nice if it was and you owned some.

$1000 worth of $1 ATi shares, suddenly becomes $13,500....

tasty!
 
short term monitary gain. Will settle back down and I don't think this news, while still good news for the company as a whole(revenue always is) will not have a dramatic influence on stock price in the long term.
 
Originally posted by: OddTSi
Originally posted by: xerosleep
Wasn't making chips for the x-box what caused nvidia to slip behind?

Good bye ATI 😛
Click to expand...

Quite the contrary. XBox chip sales have been keeping nVidia's profit margin as high as it is. I know that someone not too long ago posted a financial report from nVidia stating what percentage of their money comes from what market (PC graphics, chipset, XBox chips, etc). Maybe someone knows what article I'm talking about and can post it again.
Click to expand...

Well, I couldn't find the original financial report, but this article from CNet has the information I was looking for:

http://news.com.com/2100-1043_3-5063661.html?tag=cnetfd.buzz

"The Xbox deal has accounted for 15 percent to 20 percent of Nvidia's sales over the past two years, and company executives credited Xbox-related business for a surge in profit during Nvidia's most recent quarter."
 
im not going to do the research but as far as stock price goes I doubt the deal had a significant impact for nvidia.
 
This doesn't surprise me. Check it:

-- Nvidia got into a pretty scrict contract with MS with the Xbox. When MS failed to perform on their end of the deal, Nvidia sued and won! Look at the profits now for the Xbox, I'm thinking Nvidia is cashing in on them now, versus before the lawsuit. ATI > Nvidia here.

-- ATI already has an integrated chipset (for P4). Nvidia had to create the entire thing from scratch and that certainly didn't help the initial cost of Xbox. With the success of the nForce/nForce2, it won't take nearly as long to developer a new chipset for either sides. ATI, Nvidia, tie.

-- ATI's chipset is already focused for Intel processors, which is probably going into the next Xbox. ATI > Nvidia

-- ATI is probably more than willing to accept strict terms of a deal, to help them spread their chips out to the world. With Nvidia obviously not backing down with the contracts, ATI is very primed to take even a strict one from MS. ATI > Nvidia.

vash
 
Am I the only noticing that the Xbox will drive itself out of the market by making itself more and more into a PC and less a gaming console?
 
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