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| Nvidia on ATI: "basically throwing in the towel" | ||
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| Topic Started: Jul 26 2006, 05:30 AM (47 Views) | ||
| Abyss of Borg | Jul 26 2006, 05:30 AM Post #1 | |
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Alsatian Rank
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credit: joystiq.com It seems that graphics powerhouse Nvidia is reacting rather well to news of AMD scooping ATI off the corporate shelf and filling in coupons to the value of $5.4 billion at the checkout counter. Speaking to BusinessWeek Online, Nvidia CEO Jen-Hsun Huang described the purchase as a "gift", presumably whilst reclining in a henhouse, sipping cocktails and counting objects of some kind. He went on to say that ATI was "throwing in the towel, leaving us as the only stand-alone (graphics chip) company in the world." Of course, not being a stand-alone graphics chip company hasn't stopped Intel from competing in that market, so perhaps winning the "who can be the last stand-alone company" competition isn't all that important. More importance can be found in the repercussions of such a large purchase. There are concerns that AMD's debt-to-capital ratio might take a turn for the worse after the company took out a $2.5 billion term loan to cover some of the purchase. Intel and Nvidia's chummy relationship may also prove to be a stumbling block should ATI's graphics chips ever be locked out of Intel machines. Still, AMD cautiously considers the potential benefits, such as major cost reductions and an entry point into the Intel-dominated laptop arena, to be worth the price and effort. Mr. Huang's expectations may turn out to be accurate in the long run, but in an industry that was once ruled by 3dfx Interactive (remember Glide?), anything can happen. |
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| Conv!ct | Jul 26 2006, 09:35 AM Post #2 | |
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Alsatian Rank
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This is a good move from AMD i cant wait to see some of the GFX cards they produce. | |
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| Xposure | Jul 26 2006, 09:53 AM Post #3 | |
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Rottweiler Rank
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yer should be good for the gaming world | |
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| Sinion Kabe | Jul 26 2006, 12:14 PM Post #4 | |
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Pitbull Rank
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Same here. |
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| Abyss of Borg | Jul 26 2006, 06:25 PM Post #5 | |
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It's could be a bad move in the long run. AMD won't be helping to make GPUs and ATI won't be helping to make CPUs. AMD partly bought them because they wanted their own chipset like Intel has. This is gonna seperate the graphics market from AMD and Nvidia will probably move towards the Intel side. Taking with them their own chipset and making their cards not work with AMD CPUs. Then all the Nvidia people will move over to the Intel side. When this news came out AMD stock went down. Intel people who use ATI might not be able to use the cards in the future because they are owned by AMD. People who use Nvivida cards for good reasons like Linux drivers and home theater/dvr use will be out of for AMD chips in the future most likely. But another thing to consider is the next generation of game consoles. Right now an ATI chip is in everyone for graphics but they have IBM power pc cpus. AMD could possibly replace IBM in time for the Xbox 720, PS4, Nintendo whatever. But whatever products do come from this we won't see them for atleast 2 years. | |
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8:25 AM Jul 11
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8:25 AM Jul 11