ATI "winding down" work on Xbox Next

[XenonXboxNext]

http://www.gamespot.com/news/2004/09/08/news_6106944.html


ATI "winding down" work on Xbox Next

ATI CFO Terry Nickerson tells technology conference that his company is
finishing up work on the next-gen console's graphics processor.
With Microsoft staying absolutely mum about next-generation console
development, gamers have had to look elsewhere for details about the Xbox
Next. Yesterday, they got a tantalizing clue from Terry Nickerson, chief
financial officer of ATI.

Speaking to the Smith Barney Citigroup 2004 Technology Conference in New
York, Nickerson gave a presentation about ATI's sources of future revenue.
Given that the company is making the graphics processors for both Microsoft
and Nintendo's next-generation machines, he naturally touched on the subject
of royalties from the two companies.

"The other one that's starting to become a factor--when you're looking at it
from an investment point of view--are game consoles," he said. "Both
Nintendo and Microsoft will be royalty [sources]." Then Nickerson dropped a
tantalizing tidbit about the Xbox Next. "We're actually winding down
development on some of the Microsoft product," he said casually.

If true, Nickerson's statement could mean that the Xbox Next is closer to
release than previously thought. In July, Steve Ballmer said that the device
wouldn't be out "in the next year," meaning at least not until August 2005.
However, while rumors persist that it will be unveiled at CES in January,
the common consensus is that the machine will most likely go on sale in Q4
2005.

Unfortunately, though, no one in the audience asked Nickerson to elaborate
on his statements in the Q&A session following his presentation. Attempts by
GameSpot to elicit further comment from both ATI and Microsoft were
unfruitful as of press time.

 

[XenonXboxNext]

more:
http://xbox.ign.com/articles/545/545712p1.html


ATI Completing Xbox 2 Graphics

Technology conference sheds insight into Xenon's development.

September 08, 2004 - Speaking at the 2004 Technology Conference Monday,
graphics card maker ATI said it's finishing work on what is presumably the
next-generation video chip for Microsoft's Xbox 2 or Xenon.


"The other one that's starting to become, I think, a factor when you're
looking at it from an investment point of view, are game consoles," ATI's
CFO Terry Nickerson said at the conference held in the Sheraton New York
Hotel. "We're actually winding down development on some of the Microsoft
product. Both Nintendo and Microsoft will be royalties."

While no specifics were revealed (hear the webcast yourself), it's at least
safe to assume that one angle on the statement is ATI is "winding down" the
development of a specialized graphics chip for the Xbox 2 or Xenon, and that
this phase of the upcoming console is nearing completion. If Microsoft's
next console is due for fall of 2005, as many industry experts predict, the
timing is near perfect.

Nickerson added: "The other market that has had a lower profile recently is
the follow-on development for both Nintendo and the Microsoft game console
product. We should start seeing, depending on when those particular
companies bring their products to market, that will turn into a royalty play
for us both those contracts. And we have found that with Nintendo,
historically that's been around $25 million a year. And it's been a constant
flow of royalty."

ATI is also working on a graphics chip with Nintendo, which is presumably
working to ship its Nintendo Revolution due to ship late next year.

We'll have more soon.

 

[Jan Lucas]

If true, Nickerson's statement could mean that the Xbox Next is closer to
release than previously thought. In July, Steve Ballmer said that the device
wouldn't be out "in the next year," meaning at least not until August 2005.

I actually think the statement can be true and Xbox Next won't be out
until August 2005.
They could have designed a chip with a huge transistor count, these days
they won't be able to manufacture that cheap and with a high yield, but
they can manufacture some reduced clockspeed engineering samples for
development kits. It would help developers a lot if they could already
get a development kit that behaves almost like the real box this early.
A console is always only as good as its games, so sacrifing some power
for great launch titles could help.

Jan