In the first collaboration between the two companies, ATI's new Visual Processing Units (VPU) will integrate DivX video compression technology and offer optimized playback of high-quality DivX video files. Thanks to hardware and software optimizations performed by ATI and DivXNetworks, RADEON 9500 & 9700-based products significantly increases video performance (up to 50% using post-processing) and reduce CPU usage when decoding DivX video.The addition of DivX support should make FULLSTREAM far more useful for consumers. Lower CPU utilization is nice, but I'm almost more intrigued to see how well video de-blocking works with DivX files.
Though plans aren't mentioned in the press release, I have to hope that the partnership will explore hardware DivX encoding acceleration for the Radeon 9500/9700. Hardware-accelerated DivX encoding would make ATI's All-in-Wonder products even more potent.