We can today reveal that ATi is definitely pegged to supply the graphical heart of the next-generation of Xbox at this moment in time, following last week’s story that this massive shift was underway.
Speaking under terms of strict anonymity, a senior source close to nVidia said, “They [nVidia] simply didn’t want to meet Microsoft’s demands for the floating design for Xbox Next. It didn’t make sense to partner on the project. At this moment in time, ATi is working with Microsoft.”
As you may have read previously, nVidia’s shares dropped and ATi’s were bolstered by the story as it reverberated around the games industry, underlining ongoing development gossip.
However, our source went on: “Although Microsoft is working with ATi at the moment, the relatively short research and development process for Xbox 2 means that if ATi cannot fulfil, Microsoft may well decide to revert to nVidia, or even go it alone.”
We’ll bring you more on all this, as it breaks.