ATI Looks To Expand Microsoft GPU Relationship

ATI CEO Dave Orton has stated that he is keen to expand the company’s co-operation with Microsoft, following ATI's confirmation that the company will be providing the graphics chip for the Xbox 360. Speaking to Reuters in Taipei, Orton commented: "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." "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", continued Orton, perhaps indicating that he hopes to see more Microsoft-related consumer electronics using Xbox 360 and other hardware in the longer-term. Orton also revealed that ATI expects Xbox 360 royalties to be similar to its deal with Nintendo's GameCube, in the range of between $2-$5 per console. However, Orton made no specific mention in this interview of the Nintendo Revolution, which the company is also providing the graphics chip for - the console is believed to be further behind in development. Rival graphics chip company Nvidia is creating the graphics chip for the PlayStation 3, after previously working with Microsoft on the original Xbox. According to Orton, PC graphics chips will continue to be ATI's foundation in the next several years and currently account for around 85 percent of revenues. The company expects its mobile phone graphics and digital television businesses to expand though and it is in the latter area in particular that the company may be hoping to partner with Microsoft. "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," said Orton.