With Microsoft staying absolutely mum about next-generation console development, gamers have had to look elsewhere for details about the Xbox Next. Yesterday, they got a tantalizing clue from Terry Nickerson, chief financial officer of ATI.

Speaking to the Smith Barney Citigroup 2004 Technology Conference in New York, Nickerson gave a presentation about ATI's sources of future revenue. Given that the company is making the graphics processors for both Microsoft and Nintendo's next-generation machines, he naturally touched on the subject of royalties from the two companies.

“The other one that's starting to become a factor--when you're looking at it from an investment point of view--are game consoles," he said. "Both Nintendo and Microsoft will be royalty [sources]." Then Nickerson dropped a tantalizing tidbit about the Xbox Next. "We're actually winding down development on some of the Microsoft product," he said casually.

If true, Nickerson's statement could mean that the Xbox Next is closer to release than previously thought. In July, Steve Ballmer said that the device wouldn’t be out "in the next year," meaning at least not until August 2005. However, while rumors persist that it will be unveiled at CES in January, the common consensus is that the machine will most likely go on sale in Q4 2005.

Unfortunately, though, no one in the audience asked Nickerson to elaborate on his statements in the Q&A session following his presentation. Attempts by GameSpot to elicit further comment from both ATI and Microsoft were unfruitful as of press time.