Reports are suggesting that ATI may well be poised to sign a deal today with Microsoft for its next generation Xbox console. Stemming from rumour that the two firms have been in close talks about such a project, technology analysts are dubbing any possible deal as a “definite possibility.”
Insiders at both ATI and Microsoft are now openly talking about various meetings held between the two companies.
Indeed, brokers at investment analysts Dundee Securities said that ATI would be “well positioned for such a move.”
As you will know, the current supplier of the Xbox’s graphical heart is nVidia, though the relationship between Microsoft and the GeForce manufacturer has been strained for a long time, with arbitration being resorted to in order to settle various arguments.
ATI has been given a taste for the console market through its close involvement with Nintendo during the development of the GameCube.
Furthermore, we can exclusively reveal that Benq, a Taiwanese electronics manufacturer, will almost certainly be supplying the DVD drive for the next generation of Xbox console. The company, to the annoyance of Microsoft, made specific reference to the deal in several papers that were made public recently.
As for the Xbox 2, expect some sort of announcement at this year’s E3, due to take place in Los Angeles this May.