ATI is making moves, following similar tactics by nVidia to stay ahead of the curve, in a recent acquisition of the company Bitboys Oy, who design primarily for mobile platforms. ATI definitely has room for improvement in the mobile GPU market, and in response to this it makes good sense for them to bring this company into the fold. This will be used soley to help ATI focus in handhelds, and will probably not affect their desktop cards or other non-embedded environments, and they are eager to do such.
"Bitboys dovetails into ATI perfectly," said Paul Dal Santo, GM of ATI's Handheld Business Unit. "Handsets are transitioning to hardware acceleration for graphics and multimedia, and the Bitboys team will play a critical role as we drive this key inflection point to make ATI the platform of choice for content providers."
You can read the full press release at ATI's site for more information.