Xbox2 News, a site dedicated to the as-yet-unannounced successor to Microsoft's first foray into console gaming, the Xbox, recently interviewed ATI's Public Relations Manager for Consumer Products regarding the announcement earlier this summer that ATI wouild produce "future Xbox technologies" for Microsoft, fueling speculation that Nvidia, which made the GPU for the first iteration of the Xbox, was being handed its hat.
ATI's rep basically declined to comment on rumors, and simply repeated the announcement that ATI would provide "future Xbox technologies" and provided no further information.
TeamXbox followed up early in September, noting that reps from all three companies were being tight-lipped, but cited a "highly placed source" who said that the Xbox 2's GPU would be an ATI R500 derivative, and that Microsoft chose them because of superior pixel shader performance.