ATI wins bid for next Xbox

C|Net | at | by Mike

Graphics chip underdog ATI Technologies said Thursday it has signed a contract with Microsoft to produce components for future versions of the Xbox game console, beating out market leader Nvidia. ATI said it entered a technology agreement with Microsoft to develop "custom, leading-edge graphics technologies" for the console.

"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," Robbie Bach, senior vice president of Microsoft's home and entertainment division, said in a statement.