ATI aims to diversify offerings

According to this article over at EE Times, ATI is looking to diversify its product line and carve out a chunk of the consumer electronics market, which includes consoles, set-top boxes, and cell phones:
Undeterred, Orton returns to the table to talk about his company's progress as it seeks to "capture the flag" in graphics in and beyond the PC. "This company will become a PC and consumer company making discrete and integrated graphics chips, and in 2004 ATI will become a visual computing company beyond the PC. We've got to get into a faster growing part of the market," he vowed.

Specifically, ATI aims to earning as much as 10 percent of its more than $1 billion in revenues from consoles, cellphones and set-top boxes by the end of its fiscal year in August. That's up from about 5 percent of non-PC business today.

ATI has already announced a new technology development agreement with Nintendo, but no details are being provided on which Nintendo products ATI will be working on. That the technology development agreement specifically mentions "Nintendo products," could mean that ATI will have a hand in developing the GameCube's successor and at least one other product. That second product just might be a next-generation successor to Nintendo's popular GameBoy Advance.

While it looks likely that ATI has sewn up Nintendo's next console, it's important to note that Microsoft has yet to announce a graphics partner for its next Xbox; ATI could win that one, too. What a coup it would be if ATI were to design the chips for Nintendo and Microsoft's next-generation consoles.

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