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ATI seeks future Xbox 3 deal from Microsoft ?

Discussion in 'ATI' started by Guest, Jun 1, 2005.

  1. Guest

    Guest Guest

    ok that's not exacly what the article says but such a thing can be construed


    ATI seeks to expand Microsoft partnership
    Wed June 1, 2005 2:45 AM GMT-04:00
    By Michael Kramer

    TAIPEI (Reuters) - ATI Technologies Inc. is seeking to expand cooperations
    with Microsoft Corp. after supplying the graphics chip for the next
    generation of its Xbox game console, said the Canadian firm's CEO on

    "Our view is that when we enter a partnership like Xbox with Microsoft, it's
    not a one-shot. It's really a launch on a long-term partnership," ATI Chief
    Executive Dave Orton told Reuters in Taipei.

    "So the opportunity is to do much more together in a range of devices, and
    that's what we want to do because we believe this technology is ultimately
    redeployable in different forms," Orton said in an interview on the
    sidelines of a technology seminar.

    "That's what we hope ultimately Microsoft will decide," said the executive
    from the Markham, Ontario-based company.

    Microsoft unveiled its second-generation console in May, the Xbox 360,
    saying it would hit store shelves in time for the 2005 holiday shopping

    ATI has said it expects XBox 360 royalties to be similar to its deal with
    Nintendo's GameCube console, in a range between US$2-US$5 per console.

    Orton said personal computer graphics chips, which account for 85 percent of
    revenue, will still be ATI's foundation in the next several years but that
    would be well balanced by its cellphone graphics and digital television

    "When you just look at what's going to happen in the digital TV market and
    the cellphone market, and ATI's position in those markets, and the
    investment we're making, we expect to see high double-digit growth -- 50,
    70, 80 percent kind of growth rates, not just for the market itself but
    ATI's growth rates in those markets," he said.

    "So when you do the math over the next three to four years, you're going to
    balance. The company starts to look much more like a PC/digital consumer
    company, not a PC company that's dabbling in digital consumer," Orton said.

    ATI's archrival, NVidia Corp., supplied the graphics chip for the current
    Xbox console, but had a high-profile dispute with Microsoft over the price
    paid for the chips and the volume in which they were produced. The two firms
    settled the dispute.

    NVida will power the graphics in Sony Corp's Playstation 3, the
    next-generation console to be launched next year.

    Production of ATI's graphics chip for the Xbox 360 will be outsourced to top
    contract microchip maker Taiwan Semiconductor Manufacturing Co. , which also
    makes much of ATI's other products.
    Guest, Jun 1, 2005
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