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ATI Wins Bid For Next Xbox

TypoNAM writes "CNET News is reporting that graphics chip underdog ATI Technologies has signed a contract with Microsoft to produce components for future versions of the Xbox game console, beating out market leader Nvidia." According to the article, "The announcement ends months of speculation over whether Nvidia, the leading maker of graphics processors for PCs, would renew its troubled partnership with Microsoft on the Xbox."

33 of 466 comments (clear)

  1. Gotta love marketing jargon by mao+che+minh · · Score: 5, Funny
    From the article: "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," Robbie Bach, senior vice president of Microsoft's home and entertainment division, said in a statement..... "Nvidia has really given a lot of signals...that they're trying to distance themselves from Xbox2,"

    This roughly equates to: "We choose ATI because they begged more and offerred to do it for less. I don't want to burn any bridges with Nvidia, so let's just say something about vision, or strategy, or something. Besides, Nvidia wanted more money. Right, well, time to crush some little entertainment company now, recycle their goods, and call it innovation!" in normal, human language.

    1. Re:Gotta love marketing jargon by PainKilleR-CE · · Score: 5, Informative

      "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," Robbie Bach, senior vice president of Microsoft's home and entertainment division, said in a statement..... "Nvidia has really given a lot of signals...that they're trying to distance themselves from Xbox2,"

      The second part of that statement (the part about nVidia) came from an analyst, not from a statement from anyone at Microsoft. The full quote about nVidia was:

      Nvidia has really given a lot of signals...that they're trying to distance themselves from Xbox2," Michael McConnell, an analyst for Pacific Crest Securities, said earlier this summer. "That relationship has really soured over the last year...Microsoft in general is just not a very nice partner to deal with. I think the whole experience left Nvidia with a bad taste in their mouth."

      My prediction:
      Tomorrow's a good day to buy nVidia stock.

      --
      -PainKilleR-[CE]
    2. Re:Gotta love marketing jargon by john82 · · Score: 4, Interesting

      No, I think the parent to your post got right. MS was able to get a much better deal ($) from ATI. And they could exert much greater control in formulating the deal. Sticking it to nVidia is probably viewed as a bonus.

      Nothing from the MS PR machine is what it seems at face value (that's why it's PR). That's why I don't think this has anything to do with technical criteria. This is cost combined with "good enough" capability to improve Microsoft's prospects for profit in XBox2.

    3. Re:Gotta love marketing jargon by MojoMonkey · · Score: 5, Informative

      "First off, nVidia has better drivers. This is important."

      Better drivers where? Windows? Linux? We are talking about the X-Box2 here. I can promise you that the drivers for ATI's card on the X-Box2 will be very good. They will be working very close with Microsoft to get the performance they need.

      --

      ----- "Blame the guy who doesn't speak English." -- Homer J. Simpson
  2. I mean, I like ATI... by sweeney37 · · Score: 4, Funny

    I'm thinking Microsoft made a mistake, with NVidia they could of renamed the game executables to 3DMark03.exe and gotten just that much more power!

    Mike

  3. No backwards compatibility? by JamesSharman · · Score: 5, Interesting

    If this is the case it seems unlikely that we will see any backwards compatibility between xbox2 and the original. The original Nvidia chip was based on a DX part (and it's likely the ATI one will be as well) but the better games access a lot of the hardware directly.

    Of course it's possible that MS were smart enough to have conditions in the original X-Box contract with Nvidia that would allow them to produce a more or less compatible chip.

    1. Re:No backwards compatibility? by jandrese · · Score: 4, Insightful

      Yeah, I mean look how much it hurt the PS2.

      For the record, I would not have bought a PS2 if it didn't support PSX games, because a good chunk of the games I wanted to play (and all of the ones I was _really_ interested in) were PSX games, but I didn't have a PSX. Fortunatly, the backwards compataiblity of the PS2 made my choice easy. Plus, it just gets messy having 6 game consoles hooked up to the TV, when it's much nicer to be able to upgrade a console by swapping it out with a newer one.

      --

      I read the internet for the articles.
    2. Re:No backwards compatibility? by tomstdenis · · Score: 4, Insightful

      There is a difference between "catching up with eyecandy" and "catching up with gameplay".

      Chances are Doom3 will have kick-ass graphics but the AI will be "the same old, same old" and the physics models [and interaction with the environment] will be "more of the same".

      I'd rather see games invest more time into physical interactions with the environment. E.g. can move objects, pick them up, kick them, break them, put them to use, etc...

      Look at UT2K3. It has awesome graphics but it isn't anything more than UT2 with fancy graphics and a better modeling system. The AI is the same, the maps are the same [e.g. all inmovable objects around with the players running at each other]. Same for GTA style and other racing games.

      I mean what happend to the promise of "totally immersive" gameplay? I'm sorry but for anyone with an IQ over 80 games like Quake, while fun and a mild diversion, are not games that require a lot of thinking power.

      Tom

      --
      Someday, I'll have a real sig.
  4. Microsoft competitor for platforms by BWJones · · Score: 4, Interesting

    Hrmmm. Given that the CEO of Nvidia has made comments discussing his "platform on a chip" concept for the company, it makes me wonder if Microsoft views him as a potential future competitor?

    --
    Visit Jonesblog and say hello.
  5. ATI = Gamecube by WhytTiger · · Score: 5, Interesting

    How do you think this will affect the current relationship between ATI and gamecube?

    --
    My Sig Beat up your Honor Roll Sig
    1. Re:ATI = Gamecube by mattwolfewvu · · Score: 5, Interesting

      *Sigh* ArtX did the graphics hardware for the GameCube. ATI bought them out sometime between the time the bulk of the design for the hardware was completed and the release of the console. Thus, the GameCube has a little ATI sticker on the front, even though it's not really an Radeon type product.

      --
      "I think that when you become a Republican, you don't get to score any more." -- Butt-head
  6. What day of the week is it? by IWantMoreSpamPlease · · Score: 4, Funny

    I'm so confused...

    SCO - Eternally bad
    Microsoft - Very Bad
    IBM - Good? Bad? They are the guys with the guns.
    RedHat - Good
    Nvidia - Bad, or good? I don't know this week.
    ATI - Good or bad now they partner with MS?

    Help!

    --
    So rise up, all ye lost ones, as one, we'll claw the clouds.
    1. Re:What day of the week is it? by mcc · · Score: 4, Insightful

      Okay, well, I'm going to leave my personal opinions are out of this one, but just so you know, this is what the official Slashdot Party Line(TM) seems to be:

      People who partner with MS are not necessarily bad, and in fact in some tiny way on the "good" side, because they are Victims. Victims, and nothing worse than misguided. Anyone who partners with MS are going to get screwed, eventually, in the end. Remember: *everyone* is a competitor to Microsoft. The world is simply split up into people Microsoft can replace and people Microsoft can't replace *yet*. If you're in the second group, Microsoft temporarily needs you, so they cuddle up to you and try to ensure that the alliance works out in such a way that at the moment Microsoft gains the ability to replace you they can as efficiently as possible stab you in the back and quietly wipe you out of existence.

      Look at MS's business partners and allies for the last ten years. It's a steady stream of broken promises, broken hearts, and dead companies.

      Once/if it becomes clear there's no way the partner is ever going to wind up a Victim-- say, NBC or SCO (and SCO's pretty clearly about to implode.. f you can think of any other examples offhand of a company that's partnered with MS and not lost an arm and a leg in the end, feel free to speak up)-- the company becomes a "puppet" or "shill" and defaults back into the "Bad" camp, indistinguishable from MS itself.

  7. So much for Nvidia cashing in on Xbox chips. by Dugsmyname · · Score: 4, Informative

    6 days changes a lot in the graphics card business...... So much for Nvidia cashes in on Xbox chips

  8. Poor ATI!! by heironymouscoward · · Score: 4, Interesting

    Every company that ever deals with MS gets shafted. I give them a year before Microsoft discovers that it is perfectly able to produce its own graphics systems, using technology that is amazingly close to ATI's, yet incredibly much cheaper.

    --
    Ceci n'est pas une signature
  9. Now might be a good time by gazuga · · Score: 4, Interesting

    to pick up some ATI stock. I thought about investing in Nvidia a while back but didn't really have the money to throw down at the time. IIRC, that was a little before they started winning all of those big contracts (like with MS). Would have at least tripled my money (or maybe more). DOH!

    And the opportunity might be here again, and still no money to throw around. (Sigh)

    --
    "I turn away with fright and horror from the lamentable evil of functions which do not have derivatives."
  10. This sucks by blackmonday · · Score: 4, Funny

    Now its gonna be a real pain in the ass to configure video drivers once I put Linux on my Xbox2.

  11. Good thing for XBox by GeckoFood · · Score: 4, Interesting

    It has been demonstrated that while nVidia may have the fastest overall chip, ATi has concentrated on a more balanced solution -- better color and clarity of the image. ATi's ship is not all that much slower than nVidia anyway when you look at the specs and benchmarks. I would rather have a game console that's fast and has a good, crisp image than a fuzzy-around-the-edges rendering. This is a good thing for XBox.

    --
    Be excellent to each other. And... PARTY ON, DUDES!
  12. Re:Troubled partnership by Richardsonke1 · · Score: 4, Informative

    If you RTFA, you would see this link: http://news.com.com/2100-1006-983593.html?tag=nl

    --
    "Men lie."
    "Yeah, about sleeping with other women, but never about bioluminescent plankton."
    -Dan Brown
  13. ATI is an underdog? by Tirephus · · Score: 4, Insightful

    I don't understand why ATI is considered an "underdog" these days.

  14. This is all nice and fun but... by JFMulder · · Score: 5, Insightful

    ... people tend to forget that nVidia was not only supplying the video solution for the Xbox, but also the networking and audio components. So with nVidia out of the picture, who is going to do the audio and networking? Does ATI have any GOOD audio and network chipsets? I know they have some sort of motherboard chipset "a la nForce", but does it feature decent 5.1 audio and networking?

  15. New Name by tds67 · · Score: 5, Funny
    ATI said it entered a technology agreement with Microsoft to develop "custom, leading-edge graphics technologies" for the console.

    Microsoft also announced that this will be a Special Edition XBox, or SEXBox for short. So ATI will actually enter into and penetrate the SEXBox market.

  16. Underdog?? by Frobozz0 · · Score: 4, Informative

    Um, calling ATI an underdog is a gross misrepresentation. Not only do they have the best performing chips, but their marketshare is actually dominant in many areas.

    http://www.beyond3d.com/#news7249

    DX9 Marketshare:
    ATI 40%
    nVidia 60%

    Integrated Marketshare:
    ATI 21%
    nVidia 27%

    Laptop Marketshare:
    ATI 68%
    nVidia 32%

    In most cases, nVidia's share in the last quarter fell, while ATI's was on the rise. Plus, ATI will be in all XBox sales and Playstation sales.

    Underdog? That's one brawny underdog.

    --
    "Politicians find new names for institutions which under old names have become odious to the people."
  17. And this just in... by Anita+Coney · · Score: 5, Funny

    Seattle WA: Microsoft, with the ink barely dry on its chip deal with ATI, turned around and sued ATI in an attempt to get ATI to lower its chip prices.

    A Microsoft spokesperson was quoted as saying, "We're losing about 100 dollars on each Xbox we sell. We feel that ATI should bear the burden of at least some of these tremendous loses. At least until we steal their technology and get our own chip plant up to speed."

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
  18. Talking Out my Ass Here... by ewhac · · Score: 5, Interesting

    I imagine the "troubled partnership" between Micros~1 and NVidia is largely based on the fact that NVidia made damn sure they had a good contract in place.

    NVidia and Microsoft cut their deal when NVidia was the undisputed leader in graphics chips, and Microsoft was the undisputed leader in anti-trust crimes. NVidia, being founded in part by ex-Sun employees, knew full well that dealing with Microsoft was a sure-fire way to get screwed. So no small amount of time was spent making absolutely certain the contract between them left no room for "creative misinterpretation" on either side.

    I imagine NVidia wants/wanted to exercise the same care in the Xbox2 deal, but Microsoft would rather have someone they can walk over. Hence the "troubled partnership."

    This is, of course, all pure speculation.

    Schwab

    1. Re:Talking Out my Ass Here... by dackroyd · · Score: 4, Interesting
      I imagine NVidia wants/wanted to exercise the same care in the Xbox2 deal, but Microsoft would rather have someone they can walk over. Hence the "troubled partnership."


      Too true. Microsoft have been playing hardball with nVidia for quite a while now. Firstly they wanted to renagotiate they terms on which nVidia supplied chips for the Xbox (basically MS realised how much money they were losing per box and wanted nVidia to share some of that loss).

      They were also fucking both nVidia and ATI over with respect to the DirectX 9 specification - basically they wanted both companies to hand over their patents for any graphics techniques that would be used in DirectX 9, ATI who were in a bit of a hole at the time (ie before the 9x00 cards came out) agreed, mostly because they were desperate. nVidia told Microsoft to f' off and so Microsoft changed the DirectX 9 specs at a relatively late date, so the cards nVidia was planning to release as the first DirectX 9 cards couldn't be because they didn't have the right pixel shaders.

      Anyway whoever does the chip for the Xbox 2 is going to have a massive task on their hands, as it is going to have to be quite different from the chips nVidia and ATI are used to making (because, even now three years after it was released, the PS2 still has a higher fillrate than any PC graphics card)
      --
      "Free software as in beer, copy protection as in racket" - Telsa Gwynne
  19. Makes some sense... by mraymer · · Score: 4, Interesting
    ATI is better for raw power, which is probably what MS wants to brag about with their next console.

    nVidia's strong point has always been their continued driver development (yes, I know the Linux driver is not open. Yes, I know about the 3Dmark controversy), and since updating drivers on a console is not something people would be used to doing, or even allowed to do, ATI's raw speed bonus seems logical.

    --

    "To confine our attention to terrestrial matters would be to limit the human spirit." -Stephen Hawking

  20. FUD by *weasel · · Score: 4, Insightful

    access the hardware directly? where would you get such an idea?

    developers are using dx8 and at most are hand-coding vertex and shader routines; which if you hadn't noticed, may have been proprietary to nvidia 2 years ago, but are directx 9 canon now.

    there is no reason to expect that xbox2 will not have backwards compatibility. there is every reason to assume that it will. heck, nintendo might even cave and have backwards compatibility.

    if anyone has learned anything from the ps2 run - it's that backwards compatibility guarantees solid sales out of the gate. you can accuse microsoft of many things - but being bad businesspeople is not one of them. they know where the money goes.

    --
    // "Can't clowns and pirates just -try- to get along?"
  21. A chart to help you by Lord_Slepnir · · Score: 5, Funny

    Day of Week: M T W T F S Su
    SCO E E E E E E E
    Microsoft E E G E E E E
    IBM G G E G G E G
    RedHat G G G G G G G
    NVidia G E G E G E G
    ATI E G E G E G E

  22. XBox All in Wonder by Hamfist · · Score: 5, Insightful

    Hopefully MS will take advantage of ATI's other strength (swiss army knife video card) and expand the concept of a console into PVR, etc.

  23. K. Y. Ho - Coolest Name Ever by syntap · · Score: 4, Funny

    "This agreement cements ATI's position as the prime graphics supplier for the future of the games industry," ATI CEO K. Y. Ho said in a statement.

    I like this new graphics chip already.

  24. This could very well be good news for NVidia by Nova+Express · · Score: 4, Interesting

    Why? Because the X-Box business was designed to be a high volume, low-profit enterprise, and with X-Box mired way back behind the PS2, it just wasn't high volume enough to make up for the thin margins.

    Moreover, because they were so concerned with X-Box, NVidia took their eye off the ball and let ATI catch up and even pull slightly ahead. I would not be at all surprised if the same thing happened to ATI this time around. There's only so much graphic card technical talent available to throw at a problem, and with so many of them working on X-Box2, I wouldn't be at all surprised to find that 6 month product rev cycle shipping to nine months or a year.

    --
    Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)

    http://www.lawrenceperson.com/

  25. So much for linux drivers. by Bruha · · Score: 5, Interesting

    Wonder if MS would push them to not make Linux drivers anymore.. They've done things similar in the past. Though the driver quality is dominated by Nvidia I'd like my 9700PRo to work in Linux.