ATI to buy XGI?

— 11:59 AM on March 2, 2006

Citing this post on Chinese website HardSpell, X-bit labs is claiming that ATI could be planning to purchase rival graphics chip manufacturer XGI. ATI recently announced plans to increase mergers and acquisitions, and XGI may be ripe for the picking as it could help strengthen ATI's presence in Asia, much like NVIDIA's recent acquisition of ULi. In December 2003, XGI introduced its Volari line of graphics cards in a bid to compete with NVIDIA and ATI's low-end offerings. However, the Volari wasn't particularly successful. Only a handful are still available today, mostly in the $20-50 range. ATI will supposedly announce its XGI acquisition tomorrow, so we should be able to confirm this story soon.

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