
According to some sources around the web, ATi has already locked up a deal with Microsoft to produce the GPU for the next Xbox console.
According to a recent article from Fudzilla:
We’ve learned from industry sources that AMD / ATI has already won the GPU deal for the next generation Xbox console. It looks like Microsoft was happy with first Xeons GPU and it wants to continue using the same, especially since the new ATI GPU should keep the compatibility with legacy games.
We’ll take this as a rumor until we get official word from ATi or Microsoft. It is also true that if ATi does indeed make the GPU for the next Xbox console, backwards compatibility will be a cinch; most if not all Xbox 360 games would be fully compatible. One of the reason this was not the case with the original Xbox was the fact that NVIDIA made the GPU for it, not ATi. Therefore, software emulation was necessary.
[Source]
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