Kyro is owned by PowerVR, not STMicro, so no it's not going away.
Secondly, my beloved Matrox.
I am still using in my gaming rig my G400. It has lasted me through my last 3 upgrades. I have only ever owned Matrox cards. Even when all my friends went NVidia and Kyro. I still play all the same games that my friends play with beautiful graphics and enough speed to be fluid. I don't play at anything lower than 1024x768 and I can use 32-bit color where my friends still have problems.
Yes, their G550 was a farce. I will not argue that.
Yes, their 2D quality is beyond all. ESPECIALLY at 1600x1200 and higher res. You probably couldn't notice the difference at 1024x768 between a GF3, ATI, Kyro, or Matrox...maybe.
Yes they have a card in the works, rumoured to be code-named
Parahelia.
I would guess (hope) for it's release by summer and I believe that it will beat (by a little or a lot, I'm not sure) all current con-(pre)-tenders.
amish