Microsoft Windows 7 to boost Nvidia and ATI

Graphics chip shipments could stabilise later this year as people look to upgrade PCs with new operating systems, according to Jon Peddie Research.

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Graphics chip shipments could stabilise later this year as people look to upgrade PCs with new operating systems, according to Jon Peddie Research.

Operating systems like Apple's Snow Leopard and Microsoft’s Windows 7, which may be released later this year, could enhance the multimedia experience for users and provide a compelling reason to buy new PCs, said Jon Peddie, president at the research firm.

Both operating systems have specific features that use graphics processing units (GPUs) to boost the performance of multimedia applications, Peddie said. The operating systems will have features to unload specific multimedia tasks - like video editing - directly to graphics chips, while keeping CPUs free to execute generic computing tasks like word processing.

These features are already available in existing operating systems like Microsoft's Vista and Apple's Mac OS X, but aren't completely integrated in the OS, Peddie said. The offloading capabilities will be more robust in Windows 7 and Snow Leopard, he said.

Graphics chip makers like Nvidia and AMD, which sells graphics chips under the ATI brand, are already delivering Windows 7 drivers to accelerate multimedia applications on the OS.

Nvidia and ATI are also putting finishing touches on new parts, which may become available by the time the new operating systems come out, Peddie said. The new graphics chips will provide better graphics and could be a reason for people to buy new PCs.

New graphics chips and pricing competition from ATI and Nvidia could also stimulate demand pent-up demand for graphics chips. ATI took the first step on Tuesday, releasing one of the first sub-$100 graphics card, the Radeon HD 4770, aimed at users looking for light gaming.

Demand for PCs generally rises whenever there is a new processor, graphics processor or operating system on the market, said Kelt Reeves, CEO of PC maker Falcon Northwest.

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