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ATI, Xbox Deal: First Consequences
$13.77 from $1.52 is not 12 percent. You must be wrong, that 900% and I
doubt it went that high. "Radeon350" wrote in message om... http://www.teamxbox.com/news.php?id=4727 After ATI said on Thursday it struck a deal with Microsoft to develop graphics technology for the Xbox successor, shares of the Ontario-based graphics chip maker jumped more than 12 percent at the open on Nasdaq, rising $1.52 to $13.77 with more than 4 million shares traded, making it the most active stock on the exchange. Meanwhile, nVIDIA's stock fell 53 cents to $16.25. The Agreement "ATI's deal to develop next-generation graphics technology for Microsoft Corp.'s Xbox successor will be structured as a royalty agreement," said Rick Bergman, a senior vice president of marketing and general manager of ATI's desktop business. "We get funds for the actual development of the chip, and then in the future when we actually ship devices, then yes, we get a royalty per device," Rick Bergman, a senior vice president of marketing and general manager of ATI's desktop business told Reuters in an interview. ATI already produces chips for Nintendo's GameCube under a royalty agreement. Graphics chips for Microsoft's Xbox video game console are currently supplied by ATI rival nVIDIA. Industry Analysts Talk "That is, in effect, an arrangement with no downside for ATI, unlike Nvidia's relationship with Microsoft whereby it was essentially selling chips in the normal model and, by our estimates, not likely to have much actual earnings from the project," Brian Piccioni, semiconductor analyst at BMO Nesbitt Burns Inc., said Thursday. In a research report issued earlier this week on Tuesday, First Associates Investment Inc.'s Dennis dos Santos said it has raised its price targets for the company as "evidence mounts evidence that ATI has overtaken Nvidia Corp. for industry leadership." Mr. dos Santos said First Associates has a "buy" rating on the stock. He raised his price target from $16 (Canadian) to $19.50 for ATI's shares in Toronto. "We believe that once investors become convinced that the leadership of the industry has changed hands, ATI will be accorded the 'industry leader's' premium multiple." He also noted that as the next generation of gaming consoles are due for 2005 or 2006, major awards would come this year. "A win with Microsoft would add between $0.10 and $0.20 per share to EPS, beginning in fiscal 2005," Mr. dos Santos wrote. "Microsoft is always particularly vague in terms of its press releases and not spilling too much, but we are very confident that this in fact represents the next generation of Xbox," said David Hodgson, an analyst with Dundee Securities. "nVIDIA has really given a lot of signals that they're trying to distance themselves from Xbox2," Michael McConnell, an analyst for Pacific Crest Securities, said earlier this summer. "That relationship has really soured over the last year. Microsoft in general is just not a very nice partner to deal with. I think the whole experience left nVIDIA with a bad taste in their mouth." "This decision marks a major victory for ATI, having beaten out the incumbent Xbox graphics chips provider and archrival nVIDIA," Paul Howbold, an analyst at Desjardins Securities Inc., wrote in a report. Although Xbox will probably not be sold until the end of 2005, Mr. Howbold raised his Nasdaq stock target price by $1.50 to between $14.50 and $20 from between $13 to $18. "nVIDIA didn't want to meet Microsoft's demands for the floating design of Xbox Next. It didn't make sense to partner on the project. At this moment in time, ATI is working with Microsoft," an nVIDIA staffer said in June, according to Spong.com, which first broke the story. "nVIDIA had recently signaled the company wouldn't be interested in pursuing the next-generation Xbox business", says Jon Peddie, principal analyst for Jon Peddie Research. "The company recently said it was looking to cut costs, and a number of industry observers have indicated that Microsoft was looking for another partner". |
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Tea Nes wrote: $13.77 from $1.52 is not 12 percent. You must be wrong, that 900% and I doubt it went that high. You misread. The quote said the price rose by $1.52, not from $1.52. "Radeon350" wrote in message om... http://www.teamxbox.com/news.php?id=4727 After ATI said on Thursday it struck a deal with Microsoft to develop graphics technology for the Xbox successor, shares of the Ontario-based graphics chip maker jumped more than 12 percent at the open on Nasdaq, rising $1.52 to $13.77 with more than 4 million shares traded, making it the most active stock on the exchange. Meanwhile, nVIDIA's stock fell 53 cents to $16.25. The Agreement "ATI's deal to develop next-generation graphics technology for Microsoft Corp.'s Xbox successor will be structured as a royalty agreement," said Rick Bergman, a senior vice president of marketing and general manager of ATI's desktop business. "We get funds for the actual development of the chip, and then in the future when we actually ship devices, then yes, we get a royalty per device," Rick Bergman, a senior vice president of marketing and general manager of ATI's desktop business told Reuters in an interview. ATI already produces chips for Nintendo's GameCube under a royalty agreement. Graphics chips for Microsoft's Xbox video game console are currently supplied by ATI rival nVIDIA. Industry Analysts Talk "That is, in effect, an arrangement with no downside for ATI, unlike Nvidia's relationship with Microsoft whereby it was essentially selling chips in the normal model and, by our estimates, not likely to have much actual earnings from the project," Brian Piccioni, semiconductor analyst at BMO Nesbitt Burns Inc., said Thursday. In a research report issued earlier this week on Tuesday, First Associates Investment Inc.'s Dennis dos Santos said it has raised its price targets for the company as "evidence mounts evidence that ATI has overtaken Nvidia Corp. for industry leadership." Mr. dos Santos said First Associates has a "buy" rating on the stock. He raised his price target from $16 (Canadian) to $19.50 for ATI's shares in Toronto. "We believe that once investors become convinced that the leadership of the industry has changed hands, ATI will be accorded the 'industry leader's' premium multiple." He also noted that as the next generation of gaming consoles are due for 2005 or 2006, major awards would come this year. "A win with Microsoft would add between $0.10 and $0.20 per share to EPS, beginning in fiscal 2005," Mr. dos Santos wrote. "Microsoft is always particularly vague in terms of its press releases and not spilling too much, but we are very confident that this in fact represents the next generation of Xbox," said David Hodgson, an analyst with Dundee Securities. "nVIDIA has really given a lot of signals that they're trying to distance themselves from Xbox2," Michael McConnell, an analyst for Pacific Crest Securities, said earlier this summer. "That relationship has really soured over the last year. Microsoft in general is just not a very nice partner to deal with. I think the whole experience left nVIDIA with a bad taste in their mouth." "This decision marks a major victory for ATI, having beaten out the incumbent Xbox graphics chips provider and archrival nVIDIA," Paul Howbold, an analyst at Desjardins Securities Inc., wrote in a report. Although Xbox will probably not be sold until the end of 2005, Mr. Howbold raised his Nasdaq stock target price by $1.50 to between $14.50 and $20 from between $13 to $18. "nVIDIA didn't want to meet Microsoft's demands for the floating design of Xbox Next. It didn't make sense to partner on the project. At this moment in time, ATI is working with Microsoft," an nVIDIA staffer said in June, according to Spong.com, which first broke the story. "nVIDIA had recently signaled the company wouldn't be interested in pursuing the next-generation Xbox business", says Jon Peddie, principal analyst for Jon Peddie Research. "The company recently said it was looking to cut costs, and a number of industry observers have indicated that Microsoft was looking for another partner". |
#3
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wrestleantares wrote: On Fri, 15 Aug 2003 12:52:49 -0400, "Tea Nes" wrote: $13.77 from $1.52 is not 12 percent. You must be wrong, that 900% and I doubt it went that high. "rising $1.52 to $13.77" So former price was: Anyone.... That's right for those of you able to read and do math it's $12.25. Notice how it did not say: "rising from $1.52 to $13.77" I checked with CBS Market watch (link from Yahoo Finance) and they say the price only jumped by 6%. Still, makes me wish I'd bought some ATI stock earlier. CNN the other day was covering Quakecon, and explaining the benefits of a graphics card update. I thought it was one of the best techincal stories ever done on a mainstream news show. Anyway they went on to say that most people wanting to play Doom 3 would need an upgrade. They mentioned ATI and Nvidia, but the only card they actually talked about was an ATI 9800. So guess what impression that leaves with the public. I love my Nvidia Fx5600 based card but I'm still thinking of buying some ATI stock before Doom 3 comes out... Keith |
#4
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First Consequences
Actually, my guess as to first consequences is that "normal" windows driver development will be totally bottom of the barrel priority in the future :-). -- == The *Best* political site URL:http://www.vote-smart.org/ ==+ email: icbm: Delray Beach, FL | URL:http://home.att.net/~Tom.Horsley Free Software and Politics ==+ |
#5
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"Thomas A. Horsley" wrote in message ... First Consequences Actually, my guess as to first consequences is that "normal" windows driver development will be totally bottom of the barrel priority in the future :-). -- Judging from the state of the current ATI drivers, it already is! |
#6
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On Mon, 18 Aug 2003 09:01:55 GMT, "ginfest"
wrote: Judging from the state of the current ATI drivers, it already is! Spoken like a true know nothing troll. Andrew. |
#7
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aep@nospam writeme.com wrote in message ... On Mon, 18 Aug 2003 09:01:55 GMT, "ginfest" wrote: Judging from the state of the current ATI drivers, it already is! Spoken like a true know nothing troll. Andrew. Actually you can call me Digital Wonderer, Dumbtrooper, or Hellwhiner Danke |
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