DigiTimes is reporting that Microsoft is in talks with SiS about a potential south bridge chip order for the upcoming Xbox2 console. The fact that Microsoft is considering SiS at all is interesting, because ATI has already been named as the graphics technology (and presumably north bridge) partner for the console.
Given the current state of ATI's south bridge chips, which are well behind the technology curve, it makes sense for Microsoft to be considering other south bridge chip designers for the next Xbox. After fuelling a healthy chunk of NVIDIA's development efforts for the Xbox MCP, Microsoft probably doesn't want to have to pay to bring ATI's south bridge chips up to speed.
Unfortunately for ATI fans, the fact SiS's south bridge chips are being considered for use in the next Xbox probably means that ATI doesn't have a big, bad south bridge of its own lurking just over the horizon.
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