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.”
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