Goodbye Nvidia, Hello ATIATI Technologies Inc. today announced it has entered into a technology development agreement with Microsoft Corp.. Under the agreement, ATI is developing custom, leading-edge graphics technologies for use in future Xbox(R) products and services. "Were combining Microsofts vision, software experience and R&D resources with ATIs pioneering leadership in graphics technologies to create innovative future Xbox products and services that meet the lifestyle needs of consumers in the Digital Decade," said Robbie Bach, senior vice president of the Home and Entertainment Division at Microsoft. "We selected ATI after reviewing the top graphics technologies in development and determining that ATIs technical vision fits perfectly with the future direction of Xbox." "Microsoft shares our passion for cutting-edge innovation," said K. Y. Ho, chairman and chief executive officer, ATI Technologies Inc. "Our success working with Microsoft in the past gives us great confidence as we move forward, and our broad experience and wealth of engineering resources will ensure that we deliver. This agreement cements ATIs position as the prime graphics supplier for the future of the games industry."