ATI to juice up budget PCs

CNET ^ | June 20, 2003, 1:41 PM PT | David Becker Staff Writer, CNET News.com

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Graphics-chip underdog ATI Technologies is expected to introduce new chips next week that will dramatically increase the graphics performance of budget PCs.

ATI has scheduled press events next week to discuss "next-generation integrated graphics." Analysts believe the company will unveil the RS300, a new family of integrated chipsets, PC components that combine a graphics processor with a chipset that controls basic PC functions such as memory use.

An ATI representative did not respond to requests for comment, but the company typically does not discuss unannounced products.

Integrated chipsets cost significantly less than standalone graphics processors and have made rapid advances in the marketplace, accounting for about half of all PCs sold in recent years. But the chips have significantly less graphics horsepower than standalone processors, meaning the low-budget PCs that use them usually can't run the latest games.

Intel has been the biggest beneficiary of the shift to integrated chipsets, accounting for about 60 percent of such chips for PCs based on Intel's Pentium 4 processor.

The RS300 will exhibit dramatically improved graphics performance over the current generation of integrated chipsets, said analyst Jon Peddie of Jon Peddie Research. That could give ATI a distinct advantage over Intel--if consumers learn about the performance advantage.

"We think the consumer is going to be confused and feel like they've had a bait-and-switch experience," Peddie said. "They see games being played on powerful desktops in the store...and they don't understand not every PC can run those."

Peddie advocates a new classification for budget PCs, so consumers can easily distinguish between "business" systems built to run office applications and "entertainment" models capable of handling games. Such categories would allow PC makers to charge a little more for a better performing system, adding a little profit to the typically low-margin chipset business.

"The consumer isn't going to know the difference unless someone tells them," Peddie said. "I think it's possible for the (chipset makers) to make a little money if the (PC makers) can get it through their thick heads that consumers will pay a few bucks for a device that can run" contemporary games.

Andrew Root, an analyst for investment bank Goldman Sachs, wrote in a recent report that he expects the RS300 to arrive this month. The new chip is unlikely to have much of an effect on Intel, he said, but it could dent numbers for Via and Silicon Integrated Systems (SiS), which together account for about a third of the chipset market. Those "are the more likely targets for ATI to leverage its superior graphics technology," he wrote.

ATI entered the chipset market last year with integrated products for desktop and notebook PCs running on processors from both Intel and Advanced Micro Devices. Nvidia, the market leader for standalone graphics processors, also competes in the chipset market, but only has a license to produce products for PCs based on AMD's Athlon processors.

ATI's most notable success has been in the laptop market, where its graphics technology can command a slight premium, while Nvidia has made headway in the market for Athlon-based desktops.

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OFFICIAL BUMP(TOPIC)LIST

[RadioAstronomer]

Whooohooo! I just installed a Geforce FX 5900 :-)

[goldstategop]

Most consumers don't know the easiest way to upgrade their PC is to upgrade their graphics card. It makes a lot of difference to what you see the display.

[RadioAstronomer]

I agree completely. However,I seem to get a bit extreme at times! LOL!! Check the specs of the FX 5900 :-)

[goldstategop]

I think I'll wait to get a flat screen display. :-)

[BrooklynGOP]

My ATI 9800 PRO should last me for a while :)

[BrooklynGOP]

Depends. If you don't play games then you don't really need a 3D accelarator. If your video is integrated, on the other hand, then you should be upgrading.

[GunRunner]

How times have changed. 3Dfx is the champ, then they lose to nVidia. Now ATI's Radeon is outdoing the Geforces. My new Dell came bundled with a Radeon 9700; I was going to replace it, but the card really performs. No need to waste $300 on a new card that doesn't realy out-spec the ATI.

[BrooklynGOP]

I remember when 3dfx's dual SLI set up was king :)

[A CA Guy]

All that for solitaire?

[RadioAstronomer]

I am running Dual Viewsonic VX-900 flat screen displays on this monstrosity.

[A CA Guy]

I remember punch cards for imput into computer and two floppy drives with one being the data base and the other being the dos operating system.
Ahhhhhhh, the good old days. When they were made of metal and costs only $75,000.

[RadioAstronomer]

My ATI 9800 PRO should last me for a while :)

Was a tossup between the two. They are pretty close :-)

[RadioAstronomer]

All that for solitaire?

ROFL!!!!!!! Boy do those cards fall quick when I win a game LOLOL!

[BrooklynGOP]

You old fart! The first computers I remember were from mid 1980's. With tape drives and printed keyboards.

[gcruse]

My last two computers were custom built to give me the most powerful graphics crunching around. I often wonder if I am throwing my money away just to be sure the latest version of Grand Theft Auto will run as it should, when an off the shelf PC might do just as well.

[BrooklynGOP]

Well, I got mine pre order, back then the choice was very clear :). How much did you shell out for 5900?

[RadioAstronomer]

How much did you shell out for 5900?

499$ Too much! ROFL

[July 4th]

Depends. If you don't play games then you don't really need a 3D accelarator. If your video is integrated, on the other hand, then you should be upgrading.

Yeah, someone doing word processing and playing Snood doesn't need to drop $400 on top-of-the-line ATIs or nVidias. Re: the onboard video though, I'm building a home theater PC this week, and will be using the onboard video from the motherboard. For S-Video out to a TV at 800x600, you don't need that much power.