ATI onboard for Xbox 2

ATI Technologies has today announced that it has entered into a technology agreement with Microsoft. Specific details of the agreement have not been revealed at this time, but ATI has stated that it will be developing custom, leading-edge graphics technologies for use in future Xbox products and services.

"We're combining Microsoft's vision, software experience, and R&D resources with ATI's pioneering leadership in graphics technologies to create innovative future Xbox products and services that meet the lifestyle needs of consumers in the digital decade," said Robbie Bach, senior vice president of the home and entertainment division at Microsoft. "We selected ATI after reviewing the top graphics technologies in development and determining that ATI's technical vision fits perfectly with the future direction of the Xbox."

"Microsoft shares our passion for cutting-edge innovation," said K. Y. Ho, chairman and chief executive officer, ATI Technologies. "Our success working with Microsoft in the past gives us great confidence as we move forward, and our broad experience and wealth of engineering resources will ensure that we deliver. This agreement cements ATI's position as the prime graphics supplier for the future of the games industry."

We'll bring you more information on this story as soon as it becomes available.