Microsoft promotes ATI as Nvidia Xbox 2 replacemen


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ANALYSTS AT THE Dundee Securities Corporation said today that Canadian company ATI was "well positioned" to pick up future Xbox business.

Obviously, Microsoft is trying to lever Nvidia and ATI against each other ? both of them being suppliers, or would be suppliers.

It's sort of a Sendo thing, or maybe a Zsoft thing, all over again, we suspect.

David Hodgson, a senior analyst at ATI, reports that the Vole will do "everything possible" to compete against the Playstation 3, although Microsoft is not well known for designing chips in the past.

Dundee said it believed the GPU supplier to Microsoft's next console ? the Xbox 2, right? ? will be compensated through some kind of Byzantine licensing deal.

According to Hodgson, Microsoft is trying to drive down the BOM (bill of materials) so it can sell its future product cheaper.

But we wonder who is playing hardball here. Nvidia faced off Microsoft before. Will ATI crumble for the extra revenues the next Xbox will bring?

We suspect Microsoft thinks its power is as it was before. Tell its suppliers what to do, and wait for the fallout...NOOOOO!!! ::angry:an:oy: ::o:o

souricon.gif News Source: The INQ

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dont you all forget that xbox 2 will be out only in 2005 if not after.. so you dont know what will happen till that time.. its 2 years to go! ATI might outpower nVidia by that time, who knows! :)

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They're obviously ditching Nvidia because they actually were pressing for MONEY in exchange for supplying their chips. When Microsoft fell behind on payment and Nvidia got upset and wanted out, MS started making payments..... remember the news?

Based on MS's dealings w/ other manufacturers and reputation, I'm suprised anyone would want to do business w/ them.

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They're obviously ditching Nvidia because they actually were pressing for MONEY in exchange for supplying their chips. When Microsoft fell behind on payment and Nvidia got upset and wanted out, MS started making payments..... remember the news?

Based on MS's dealings w/ other manufacturers and reputation, I'm suprised anyone would want to do business w/ them.

actually the real deal news was Nvidias non commitment to lower the prices of the graphical chips it was providing for the Xbox

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