ATI Technologies announced a deal with Nintendo Thursday that the graphics technology company said justifies its $450-million purchase in April of California-based ARTx.
Nintendo chose Thornhill, Ont.-based ATI's graphic chip for its next-generation Gamecube gaming console that will hit the market soon.
The royalty arrangement is ATI's first move into the game console business
ATI said its game console chip, which can run at speeds of more than 200 megahertz, was designed by engineers at ARTx.
"ARTx brought a piece of the puzzle in the partnership with Nintendo in the development of Dolphin graphics, which is now part of the Gamecube," said David Orton, ATI's COO and president.