Xbox 2 powered by ATI

Nvidia snubbed

Big news today regarding future generation consoles, as graphics-hardware manufacturer ATI confirmed that they'd won the two horse race with Nvidia to power Microsoft's Xbox 2 console.

"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," commented Robbie Bach, senior VP of the Home and Entertainment Division.

ATI has been the rumoured 'Xbox Next' successor for some time, with speculation rife concerning Microsoft's rift with Nvidia over the pricing of the last Xbox, and the direction to take with the next system.

In related news, ATI risk upsetting their other major console client Nintendo with this deal, though given that (according to The Register) Cube production has apparently ceased pending warehouse clearance, ATI might feel their best interests are served by attempting to court both parties.

E3 Trailer