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ATI for Xbox 2?

So complicated

Shares in technology manufacturer ATI rose today as rumours gathered pace that the company were favourites to land a deal to supply graphics hardware for the Xbox 2 - ahead of rival NVIDIA.

If true, this move would mark a noticeable shift away from the dominance NVIDIA until recently had when it comes to technology for gaming. Contrasting with ATI's 5.6% gain, NVIDIA's shares fell by 7.8%.

A report on Ample.com stated that Nvidia holds 47 percent of the market share for graphic and imaging chips, while ATI holds 29 percent, according to industry research firm Isuppli. However, if true, this rumour could leave NVIDIA free to provide the graphical technology for the next Playstation console - which would be an even more appealing proposal given the brand's market-leading position.

ATI currently provide the technology that powers the graphics of the Nintendo GameCube, and have also said they wish to continue their healthy relationship with the Japanese giant - which could well be strained if a deal with Microsoft proves true. More on all this as we get it.

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