ATI Gets $18 Million Pre-Payment for Xbox 2 GPU Development

[Shadow20002]

Spong says ATi will also see a significant cash injection to trigger the research and development needed for the project. Indeed, we revealed back in June that ATi had taken a “deferred revenue associated with an unannounced contract” to the value of $18 million. We can now confirm that this was taken as pre-payment from Microsoft for Xbox 2 GPU development.

“We get funds for the actual development of the chip, and then in the future when we actually ship devices, we get a royalty per device," confirmed Rick Bergman, a senior vice president of marketing at ATi.

The big question forming in the minds of most analysts at this point in time is how the Microsoft deal will impact on ATi’s ongoing work with Nintendo. “We've had a good strong long history with Nintendo,” Bergman continued. “We don't expect any impact. We're comfortable with our relationship with Nintendo and I think we're great partners.”

[LynxFX]

Looks like MS is taking a more reserved approach this time around. If you all remember, they gave Nvidia a $200 million advance for research and developement. But then Nvidia didn't get the royalties deal which basically screwed them. Maybe this new route will work better.

[spectre187]

"Nvidia didn't get the royalties deal which basically screwed them"
no microsoft did not screw nvidia... the fact of the matter is contracts are signed... of course lawyers and blah blah read them... they knew what they were getting into. believe me...

[Ford Mustang]

Yeah, nVidia probably had a whole army of legal goons look over the contracts. They knew what they were doing.

[CharlieHustle]

So what you guys are sayin is that nvidia took the money. And never thought about if the xbox sold well, they would get paid more. huh?

[rockola]

I dunno I really liked invidia when they were the underdogs but since the xbox, Ive read some comments that the nvidia ceo has said to make me think that thier success has gotten to thier heads. I hope I never see them go the way of 3dfx (who also got the same way when they were on top). ATI will probably get the same way now that they have been holding the lead. but they have been the underdogs for a loong while, they may not loose thier heads