ATI provided the Xenos GPU for the Xbox 360 and it looks as though they will continue a similar relationship with Microsoft through the next generation. Fudzilla is reporting that ATI will provide the graphics chip for the third generation of Xbox.
The technology site reports that this deal should ensure backwards compatibility with Xbox 360 games. According to the site, the third generation Xbox will launch sometime in 2012, which seems to square with launch timeline estimates from certain analysts and executives.
Another report today suggests that ATI rival Nvidia won a contract to supply the chips for a more powerful Nintendo DS, possibly slated for launch in late 2010.

2 Comments
11 months ago
IMO that`s awesome news!
11 months ago
Great this is expected though.
The reason why they chose ATI is, who ELSE do they have to chose from? Intel (previous chips subpar and report behind schedule on new chip), then there is Nvidia who has already screwed them with xbox(1) by never lowing the price as required by contract, even after years of manufacturing. Even after a law suit. Nvidia does not honor the contract. They pulled the SAME exact trick with Sony. Causing them to only be able to lower cost on NON-Nvidia parts in the PS3. And causing many customer to thing Sony was being greedy on the price when it was actually Nvidia. They also screwed PC video card manufacturers recently. Microsoft is watching this, and remembers xbox1. Your dealings come back upon you. Plus Nvdia's executives thought the company was successful mostly because of the work of the executives, allowed ATI to drain engineers right back, and then plus some and feel behind.
Not to mention they want full compatibility to the xbox360 to be ensured. At this point with Nvidia freezing the chip set units development, it is safe to say that EVERYONE has chosen
another company. That means Sony, and Nintendo most likely have chosen ATI as well!
Only other company available is Intel and there are mixed signals about them being ready. Sony does not want to be late the the next generation this time, or risk by depending on Intel.
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