ATI is expected to ready its graphics processor codenamed R500 by the first quarter of next year. Namely, this will be the GPU powering the Xbox 2 when it's released.

The R500 will be built using a 90nm process at Taiwan Semiconductor Manufacturing Company (TSMC) and will deliver performance similar to ATI’s next-generation high-end graphics chip, the R520, the sources said.

DigiTimes also reports the R480 is due to launch before the end of this year. As we reported just yesterday, neither NVIDIA nor ATI seemed to have plans to upgrade to high-end graphics products this year, but with Radeon X800's 0.11u chip counterpart around the corner, they may be in position of releasing yet another higher clocked version of the X800.

The fact that the new 0.11u chip has taped out doesn't mean they will get new cards out in store shelves this holiday season.

Once again, that doesn't necessarily mean new products... ATI obviously wants to move onto a smaller chip process to cut costs and increase clock frequencies. So they could simply replace current chips in X800s to these transparently to the user, or they could use them into a new model and sell for a premium.

I think that's exactly what manufacturers are avoiding by not releasing any new products :blackeye: