ATI's next-generation 5xx series of desktop graphics chips will enter volume production by the end of Q3, the company has allegedly told its customers.

So claims a source close to Taiwan's graphics card manufacturer community, according to a DigiTimes report today.

ATI last week slashed its sales forecast for the three months to 31 August 2005 by 15.5-17.2 per cent, citing a massive inventory writedown which cut the heart out of the company's gross margin. Sales are likely to have been hampered by the company's failure to ship the R5xx series as many customers and end-users expected it to. Its multi-GPU technology, CrossFire, hasn't materialised as promised, either.

ATI's R520 may be announced shortly, but if today's report is accurate, it will not be available in large quantities until the end of the month. ®

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