[jpaana]

http://biz.yahoo.com/bw/030814/145156_1.html

Press Release Source: ATI Technologies Inc.


ATI Technologies and Microsoft Announce Technology Development Agreement
Thursday August 14, 8:04 am ET
ATI Graphics Technologies to Power Future Xbox Products and Services


MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 14, 2003--ATI Technologies Inc. (TSX: ATY, NASDAQ: ATYT) today announced it has entered into a technology development agreement with Microsoft Corp. (NASDAQ: MSFT - News). Under the agreement, ATI is developing custom, leading-edge graphics technologies for use in future Xbox® products and services.
"We're combining Microsoft's vision, software experience and R&D resources with ATI's pioneering leadership in graphics technologies to create innovative future Xbox products and services that meet the lifestyle needs of consumers in the Digital Decade," said Robbie Bach, senior vice president of the Home and Entertainment Division at Microsoft. "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."

"Microsoft shares our passion for cutting-edge innovation," said K. Y. Ho, chairman and chief executive officer, ATI Technologies Inc. "Our success working with Microsoft in the past gives us great confidence as we move forward, and our broad experience and wealth of engineering resources will ensure that we deliver. This agreement cements ATI's position as the prime graphics supplier for the future of the games industry."

About ATI Technologies Inc.

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3-D graphics and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost visual processor unit (VPU) provider and is dedicated to delivering leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console, and handheld markets. With 2002 revenues in excess of U.S. $1 billion, ATI has more than 2,000 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

About Xbox

Xbox (http://www.xbox.com/) is Microsoft's future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in the continents of North America, Europe, Asia and Australia.

About Microsoft

Founded in 1975, Microsoft (NASDAQ: MSFT - News) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

Microsoft and Xbox are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft® Web page at http://www.microsoft.com/presspass/ on Microsoft's corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft's Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com.



--------------------------------------------------------------------------------
Contact:
ATI (ATI, press only)
Chris Evenden, 905-882-2600, Ext. 8107
cevenden@ati.com
or
BenchMark Porter Novelli (ATI, press only)
Anne Ferguson, 416-422-7154
aferguson@bmporternovelli.com
or
Edelman (Microsoft, press only)
Shoreen Maghame, 323-202-1061
shoreen.maghame@edelman.com
or
Edelman (Microsoft, press only)
Sean Durkin, 206-268-2229
sean.durkin@edelman.com



--------------------------------------------------------------------------------
Source: ATI Technologies Inc.

[NocturnDragon]

We [...] determining that ATI's technical vision fits perfectly with the future direction of Xbox

It is easy to think that means also the direction for dx10?
What do you think?

[Qroach]

hmmm, interesting. However like last time, the day before annoucing xbox, MS switched companies. They also reserve the right to back out, so unless hardware shows up with an ATI chip in it, then I'd wait to see if this changes. However, it's still very good news for ATI...

[a4164]

ha! I was still hoping for a Rendition part

So does this mean that ATI will power both Xbox2 and GC2. Or is GC2 not officially announced and Nintendo could still go with someone else? Nintendo still had its technology agreement with ATI, but they do not mention what it is for. But, you would have to think it could only be for 1 of 2 products, their next console, or a new GameBoy.

[Ozymandis]

That's a stunner. I know that nVidia and MS weren't exactly on great terms, but I didn't expect this.

Where does this leave Nintendo?

[Squeak]

Well I'll be!
Now that ATI has turned to the dark side too, I can't buy products from them either... I guess that leaves me only one choice, 3dlaps.

It's going to be interesting to see how this turns out, with both Nintendo and microsoft getting work done by the same company.
Maybe they will make two hermetically sealed teams to avoid being accused by either part of favouring the other..? But that would seem a bit daft and counterproductive. Possibly the best solution would be to just make one VPU, and the let ms and Nintendo chose the CPU themselves. That way they could focus all their resources on making the best possible design.
But with microsoft in the mix we know that's not going to happen.

[PC-Engine]

Hmm..I wonder if ATI and MS is going the eDRAM route for Xbox Next.

[Squeak]

By the way, how are they going to achieve 100% backward compatibility? They do have direct-x, but that doesn't guarantee anything.
I guess this means that ms is never going to let developers touch the metal on the current xbox?

[Brimstone]

Originally Posted by PC-Engine

Hmm..I wonder if ATI and MS is going the eDRAM route for Xbox Next.

I can only think of two companies of the top of my head that Microsoft and ATI could partner with to do that. NEC or Micron. Not sure how well TSMC can do eDRAM.

[PC-Engine]

Originally Posted by Brimstone

I can only think of two companies of the top of my head that Microsoft and ATI could partner with to do that. NEC or Micron. Not sure how well TSMC can do eDRAM.

I think TSMC can do it fairly easily. IIRC 1T-SRAM-Q is designed for easy manufacturing with standard fab technologies and TSMC has already licensed the technology from Mosys. However I really don't see a need for it though. For instance I can see Xbox Next as having 512MB of DDR3 and everything being connected using PCI Express.

[Joe DeFuria]

Originally Posted by Qroach

hmmm, interesting. However like last time, the day before annoucing xbox, MS switched companies.

Last time, I don't believe there were any official announcements from any company until it was announced that nVidia and Intel won the contracts.

They also reserve the right to back out, so unless hardware shows up with an ATI chip in it, then I'd wait to see if this changes.

Denial is not just a river in Egypt.

However, it's still very good news for ATI...

Indeed, and not very good news for nVidia. Man, if ATI manages to successfully pull of X-Box, GameCube...AND continue PC technology leadership.....

[Brimstone]

Originally Posted by PC-Engine

I think TSMC can do it fairly easily. IIRC 1T-SRAM-Q is designed for easy manufacturing with standard fab technologies and TSMC has already licensed the technology from Mosys. However I really don't see a need for it though. For instance I can see Xbox Next as having 512MB of DDR3 and everything being connected using PCI Express.

How does MOSYS 1T-SRAM-Q compare with what the eDRAM Sony/IBM will use in their CELL chip? Are they about the same technology wise?

[zidane1strife]

Nvidia... soon.... R.I.P....

YES!!!!!

[epicstruggle]

Originally Posted by Ozymandis

That's a stunner. I know that nVidia and MS weren't exactly on great terms, but I didn't expect this.

Where does this leave Nintendo?

What are you talking about, the arbitration between the 2 companies was quite fierce. MS is loosing money on the xbox and wanted to save money on parts. And NV was loosing the desktop market(ing) so they were desperate to increase their revenue streams. I dont doubt that this is one of the main reasons why MS is jumping ships.

later,

[PC-Engine]

Originally Posted by Brimstone

How does MOSYS 1T-SRAM-Q compare with what the eDRAM Sony/IBM will use in their CELL chip? Are they about the same technology wise?

IIRC the eDRAM Toshiba/SONY uses has a 25% advantage in die size, but 1T-SRAM-Q is faster with performance equal to SRAM.

[cybamerc]

Qroach:

> However like last time, the day before annoucing xbox, MS switched
> companies.

Gigapixel was never officially announced as a partner. This is a done deal.



Ozymandis:

> Where does this leave Nintendo?

With the better team



Squeak:

> By the way, how are they going to achieve 100% backward
> compatibility?

I'm not so sure they will implement support for Xbox 1 titles but if they do it will be through the drivers and I doubt it would've been any different had they gone with Nvidia. The only reason why PS2 was backwards compatible was because Sony found a use for the PS1 chipset. Since then Sony has acquired Connectix PS1 emulator. IF PS3 is backwards compatible it will be through software as well.

[7upac]

I wonder if sony is going to be smart this time and get eather ATI or Nvidia to do their GPU.

[Qroach]

Last time, I don't believe there were any official announcements from any company until it was announced that nVidia and Intel won the contracts.

That's correct, doesn't change the fact that there was a last minute switch.

Denial is not just a river in Egypt.

It has nothing to do with denial joe, just stating the facts based on what happened last time. I'm certian MS will always leaves something in a contract like this to protect their investment.

Yup, glad I have lot's of ATI stock right now.

[epicstruggle]

Look MS is smart enough to make sure there is a way out of the contract if NV can come up with a better deal than ATI. I doubt though that NV really cares now for xb2, after dealing directly with MS.

What other company out there could have bid for a contract with MS?
I doubt matrox could even come up with anything that would not be laughable. So is there anyone else out there?

later,

[Geeforcer]

So ATi is going to desgin fairdly differnt (yet cutting-edge) chips for next Nintendo and MS console, in addition to PC hardware? I wound imagine that MS and Nintedo would want to diffrentiate their consoles, something that would be much hardwer if they have a nearly identical GPU. Further, who is going to provide mainboard logic, again ATi? Xbox clearly had major impact on Nvidia's product schedual, I wonder what kind of concehunced designing TWO concole GPUs in the same time-frame will have on ATi.

BTW, is MS going to buy chips from ATi or merely license the technology?

[epicstruggle]

Originally Posted by zidane1strife

Nvidia... soon.... R.I.P....

YES!!!!!

AHH!! Yes, exactly what we need, only one major graphics company. Im sure they wont act anywhere like IBM did in the 80's or like AT&T when they were the only game in town.

later,

[Qroach]

Cybermerc,

Gigapixel was never officially announced as a partner. This is a done deal.

Please read what I wrote. I said "the day before annoucing" MS switched companies. I didn't say anything about anyone being offically a partner and then switching. Gigapixel was privately held anyway, so they wouldn't have to disclose any deal that had been signed.

[zidane1strife]

PCI Express

Isn't that a temp. standard? I thought there was a next-gen agp tech coming soon.

[PC-Engine]

Originally Posted by zidane1strife

Isn't that a temp. standard? I thought there was a next-gen agp tech coming soon.

No Intel and the rest of the PC industry is moving towards PCI Express. It's going to be the next bus standard on PCs. AGP is going to be phased out when PCI Express takes over. You won't be seeing AGP16X in future PCs.

[arhra]

BTW, is MS going to buy chips from ATi or merely license the technology?

I wouldn't be surprised if they work out a licensing agreement that lets Intel do the fab duty. ATi did sign a cross-licensing agreement with Intel not so long ago...

As for backwards compatability, nvidia stated in a conference call that the XB2 would be backwards compatible regardless of whether NV was used or not.