Xbox2 to be powered by Ati

SPOnG has reported some news on the console front. The article states that ATI will be providing the next generation motherboard/video chipset for MS' next generation article. A huge deal for ATI if it's true.
Senior development sources in the UK have today revealed to us that Microsoft’s next generation Xbox will use an ATi graphics chipset, following Microsoft’s apparent inability to work cohesively with former provider nVidia.

Not known as the most forgiving company in the world, it seems that Microsoft has simply tired of the bitter arbitration it found itself involved in, following the breakdown of any productive working relationship with nVidia. As you may know, the Xbox’s inordinately high production costs saw Microsoft put the squeeze on nVidia over its pricing for the Xbox’s graphical heart. nVidia resisted, and no clear solution could be found, leaving both firms no option but to take to the arbitration table.

Although the two came out from negotiations full of smiles and handshakes, today’s news clearly demonstrates that the rift became too big to breach, leaving Microsoft to turn to the only other company able to supply graphics power to Xbox 2’s projected output.

The full article is here