As we exclusively revealed to the world a couple of months ago, ATi will power the Xbox 2, stealing the contract away from nVidia.
Although relations broke down between nVidia and Microsoft to the point of requiring arbitration, the Xbox 2 is likely to be a better planned and more successful outing than Microsoft’s inaugural home console.
“We selected ATI after reviewing the top graphics technologies in development and determining that ATI's technical vision fits perfectly with the future direction of Xbox," said Robbie Bach, senior vice president of the Home and Entertainment Division at Microsoft.
“This agreement cements ATi's position as the prime graphics supplier for the future of the games industry," said K.Y. Ho, ATi's chairman and chief executive officer.
Microsoft's next home console (we refer to it as Xbox 2, of course, until we're told otherwise) is due for launch, according to the company, at the end of 2004/early 2005.