For the last three years or so Intel had been working on an x86-derived graphics chip, dubbed Larrabee, that would supposedly shake up the discrete GPU market. After holding several demos, which unfortunately were far from being competitive, plans to market a consumer version of Larrabee were indefinitely put on hold last December, opting instead to release it as a software development platform for both graphic and high performance computing.

Stories posted since then have hinted at a comeback, but in a posting on the company's Technology@Intel blog yesterday, director of global communications Bill Kircos confirmed that Larrabee as a discrete graphics product for consumers is indeed dead -- "at least in the short-term." (Yes, he couldn't resist adding a bit of ambiguity). Intel said it plans to derive a business from Larrabee, however, using its multi-core GPU technology in the high performance computing market to process parallel code more efficiently -- much like Nvidia does with its CUDA programming model.

As far as consumer graphics are concerned, the company will continue pushing its integrated solutions for desktops, laptops and low-power handheld devices such as smartphones. Intel believes HD video and mobile computing are the most important areas to focus on moving forward when it comes to its graphics business.