Monday, July 16, 2007

Atheros plays games

Kudos to Atheros for nabbing a design win in the next version of the Nintendo DS handheld game machine expected to ship in time for Xmas, according to a report from Lehman Brothers this morning. The Wall Street firm estimates the chipmaker could grab $72 million or more in revenues in 2008 from sales of its integrated ROCm chip to Nintendo.

International Data Corp. says Nintendo could ship as many as 24 million handhelds next year. That's a big bump for Atheros and Wi-Fi, too. But long term, Atheros will see more volume from its drive into cost-squeezed desktop Wi-Fi chips, an effort which will make PCs chips nearly 40 percent of its business, driving down profitability, Lehman said.

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