Nintendo and AMD today announced that the next generation Wii will use a graphics chip designed and provided by AMD. This is great news that will help AMD's bottom line for quite a while to come as the console business is very different that the PC business. Instead of having to continually invest money into research and development into new architectures in order to keep releasing brand new families of GPUs in order to keep up with the competition, once the Wii is released AMD's R&D is over and done with. Instead, the GPU in the Wii U will be a source of income with only the production costs on the expense side of the balance sheet, which is a cost per chip which will decline over time as the production facilities perfect the fabrication process. Consoles generations last a long time and for the entire existence of the Wii U, AMD will be making money from the console. You can read more about what the Wii U will be able to do on Nintendo's site though we still do not have much information on the actual GPU hardware specifications.
"As excited as Nintendo may be about this launch, AMD is equally excited to be a proud technology partner and supplier of the GPU technology for the Wii U. This partnership is another example of AMD’s graphics leadership and innovation, enabling the most dynamic, immersive gaming experiences regardless of platform."
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