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Consolidation - ATI & Xbox 2

ATI Wins Xbox Deal from Nvidia, Stock Up: "ATI Technologies Inc. (Toronto:ATY.TO - news) said on Thursday it struck a deal with Microsoft Corp. (Nasdaq:MSFT - news) to develop graphics technology for its next generation Xbox (news - web sites) video game console, dealing a blow to rival Nvidia Corp. (Nasdaq:NVDA - news)." Thanks Peter Binazeski. Also, Namco Hometek sends word that the countdown has begun for the release of Soul Calibur II for all major console systems on August 26.

30 Replies. 2 pages. Viewing page 1.
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30. Wow Aug 15, 2003, 06:17 Garrote
ATi sure has turned around from a few years ago when the 3d cards they produced was crap and no-one thought 3DFX would ever die. Impressive to restructure their production so they now make fast, high-quality and reliable cards.  

Pale Death with impartial tread beats at the poor man's cottage door and at the palaces of kings.
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29. Re: ATi != nVidia Aug 14, 2003, 23:34 BigDawg3683
#22, ATi is infact bigger. They have about 300 more employees.

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28. ATi and XBox2 Aug 14, 2003, 23:08 showler
ATi is going into this fully aware of what nVidia went through with Microsoft (don't think they haven't been watching that carefully), and have had deals with MS in the past. I'd bet they've negotiated a deal they are sure will benefit them, perhaps not financially, but overall.

Also, when nVidia went into the Xbox deal they had to create an integrated video chip, motherboard chipset, and sound solution. None of which they had any experience with, but which produced nForce. They went after MS for more money on the Xbox, but I bet they didn't take into account the ancilliary profits. Besides, they just stated that all their profits from the last quarter resulted from the Xbox deal.

It hasn't been said yet whether ATi is providing anything beyond the graphics for the Xbox2, but even if they are ATi is already involved in integrated graphics and motherboards, and sound is easy to acquire these days. It won't stress them nearly as much as it did nVidia since the work is already in progress.

I also think backwards compatibility should be possible. MS probably owns the information needed to do it, and there have been wrappers created that allow ATi cards to play nVidia specific demos. Any loss in performance caused by the wrapper will be negligible compared to the extra power of the newer GPU.

I also agree with the idea that ATi won the deal partially because of their All-in-Wonder experience. NVidia's attempts to copy the AIW have been less than successful, and MS has been talking about making the Xbox2 a multi-function device for ages now.

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27. Re: Lol you fanboy dumbfucks Aug 14, 2003, 19:37 Bingo
ATi & Nvidia both make good cards, I just happen to have a 9500pro and an AMD 2.4 every game works like a dream. Stop all the ATi is better BS, both cards rock.

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26. Re: Lol you fanboy dumbfucks Aug 14, 2003, 17:38 Moog Operator
We are sooo dumb. I hate playing any game at 1600*1200, and I really hate playing them with 8x antialiasing. That image quality sure is a pain in the ass. 16x ansiotropic filtering? phh, its for morons. I hate clean, uncorrupted textures, and I wish ATIs driver updates would cause rainbow texture corruption! YEAH!!! moron.

I just hope this doesn't set ATI months and months behind nVidia like their xbox debacle did.

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25. DVD & AIW Aug 14, 2003, 16:46 TangledThorns
I just thought about ATI's AIW and I bet MS wants to make the XBOX2 a real media center for the living room. DVD, TIVO and games. Oh my!

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24. Re: Nvidia Got OWNED! Aug 14, 2003, 16:41 Furious
I'm not so sure that switching video card vendors will mean that XBox 1 games won't work on XBox 2 consoles. Last I knew XBox games were based on some DirectX version meaning as long as ATI's gfx card is DirectX compliant then any games based on the current DirectX version being used for the Xbox should should be backwards compatible (based on Microsofts's COM Standards whereas no interfaces can be changed, only new interfaces can be added).

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23. Ouch Aug 14, 2003, 15:55 Creston
No matter if ATI actually winds up losing money on this deal (as reportedly Nvidia has been with the original X-box), this is a PR victory of a rather large magnitude for them.

"The way it's meant to be played, just not on the X-box."

I doubt it will mean a whole lot to backwards compatibility between the two boxes. By the time the Xbox 2 comes out, graphics cards will have probably trippled their power again, and I don't think ATI will have any kind of issue with building a little compatibility mode thingy into their graphics chip to make sure the old games still work.

Nvidia really needs to get their act together though, they're getting hammered on all fronts now.


Avatar 15604
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22. Re: ATi != nVidia Aug 14, 2003, 15:52 ReDeeMeR
BigDawg3683, they wre around for longer, but they definately arent bigger then NVDA.

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21. Re: No subject Aug 14, 2003, 15:47 ReDeeMeR
I'm buying one soon, soltek looks solid for a good price and if you're on a tight budget shuttle looks damn good, sound/lan and good preformance/ good o/c for under 70USD

Oh and if you're going to buy 1, be sure that you're getting Nforce 2 "Ultra" it "officialy" supports FSB400

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20. ATi != nVidia Aug 14, 2003, 15:33 BigDawg3683
Don't expect them to slip because nVidia did. ATi's been around far longer and is also a larger company. They have plenty of resources and can afford to put a whole new team on the project.

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19. Re: No subject Aug 14, 2003, 15:31 ExcessDan
i want an nforce 2 motherboard

"The" Dan
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18. Re: No subject Aug 14, 2003, 15:14 Marksman
Well his intel CPU makes the internet faster in 3D. While us poor AMD people just get plain 2D websites I love my Nforce 2 motherboard

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17. Re: This is great news for all of us Aug 14, 2003, 15:05 ExcessDan
well it's not like ati wasn't busy making their graphics chip for the gamecube

"The" Dan
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16. Re: This is great news for all of us Aug 14, 2003, 14:29 Da-Fly
The whole reason NVidia fell behind was because they lost a development cycle while faffing around with the gfx chip for the X-Box.

So now ATI are working on the next chip. They will have to be very careful not to lose their marginal lead over NVidia.

ATI have done well to turn the heads of gamers who've only ever have Geforce X's in their machines - it would be a shame for them to lose out by over-investing resources away from the PC market.

Getting involved in this kind of development could be a kiss of death.

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15. This is great news for all of us Aug 14, 2003, 14:07 Ryvar
Now that nVidia has some breathing space to focus on their technology while ATI is trying to live up to Microsoft's strident demands, we might actually start seeing a competition again. The roles have been reversed and I for one can't wait to see the outcome of this, because real competition only means that we the consumers win.


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14. Re: No subject Aug 14, 2003, 13:45 ReDeeMeR
I love idiots like Gimpz0r, knows nothing of hardware and yet keeps throwing bull around. AMD is the way to go these days, I can have 3-4 CPU upgrades during one year time instead of juse one shitty intel cpu.

I could agree about ATi, but still it's far from what that moron Gimpz0r was trying to prove, yes there are still games that have probs with ATi, but those are just few, I have 14 lan buddies and 5 of them got ATi and everyone has AMD rigs.

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13. sometimes companies never learn Aug 14, 2003, 13:37 vacs
great, now it's ATI's turn to lose money on the X-Box...

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12. Re: No subject Aug 14, 2003, 13:30 Lactose The Intolerant
Gimpz0r is just an attention whore, don't let him derail the thread.

After Microsoft's problems with Nvidia who is suprised?

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11. Re: No subject Aug 14, 2003, 12:49 JM
I made the switch to AMD a couple years ago and never looked back. Just because you spent more for your Intel CPU doesn't mean it's a superior product.

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