In a surprising move, Intel plans to move away from using it’s own graphics processors with the next "full fat" Atom processors. Intel has traditionally favored its own graphics chipsets; however, VR-Zone reports that Intel has extended it’s licensing agreements with PowerVR to include certain GPU architectures.

These GPU licenses will allow Intel to implement a PowerVR SGX545 equivalent graphics core with its Cedarview Atom chips. While the PowerVR graphics core is no match for dedicated GPUs or likely that found in Intel’s own Sandy Bridge "HD 3000" series, the hardware will allow Atom powered systems to play video with ease thanks to hardware accelerated decodding of "MPEG-2, MPEG-4 part 2, VC1, WMV9 and the all-important H.264 codec."  VR-Zone details the SGX545 GPU as being capable of "40 million triangles/s and 1Gpixles/s using a 64-bit bus" at the chips original 200mhz.

Intel Atom Processors Will Not Use Intel Graphics, PowerVR GPUs Planned - Chipsets  1

Intel plans to clock the mobile chips at 400mhz and the desktop graphics cores at 640mhz.  The graphics cores will be capable of resolutions up to 1440×900 and supports VGA, HDMI 1.3a and Display Port 1.1 connections for video output.  DirectX 10.1 support is also stated by VR-Zone to be supported by the SGX545, which means that the net-top versions of Atom may be capable of running the Aero desktop smoothly.

This integration by Intel of a GPU capable of hardware video acceleration will certainly make Nvidia’s ION chipsets harder to justify for HTPC usage.  ION chipsets will likely reliquish marketshare to cheaper stock Intel Atom platforms for basic home theater computers, but will still remain viable in the more specific market using ION + Atom chips as light gaming platforms in the living room.