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A surprise, as Macs use ATi graphics.
http://arstechnica.com/news.ars/post/20060718-7295.html

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Coming to video iPod: NVIDIA 3D graphics

7/18/2006 5:24:26 PM, by Ken Fisher

You may find ATI in most Intel Macs these days, but when the so-called "true video iPod" debuts, chances are that it will be sporting technology from longtime competitor NVIDIA. Industry analysts at American Technology Research have raised their Apple stock purchasing recommendations from "hold" to "buy" on their belief that NVIDIA has secured its place in the much anticipated device. They believe that NVIDIA's entrance into the iPod can be viewed as a strong sign that Apple intends to support 3D on the video iPod, and they believe that this will translate into significant sales. News of the recommendation change first appeared on the Dow Jones Newswire.

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"Based on our analysis, we believe Nvidia is designed into the next-generation vPod socket at the expense of Broadcom," said Satya Chillara, author of the report. "We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod."

If true, NVIDIA's claim to the video iPod goldmine would be a major loss for Broadcom, which to date has supplied most of the iPod's brains. Nevertheless, it must be noted that Chillara is not certain that 3D functionality is at the heart of the NVIDIA's offering; it does stand to reason that NVIDIA's main edge over Broadcom would rest in the company's 3D prowess, which already extends to mobile phones, however.

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A video gaming iPod?

On the programming front, Apple appears to be investing in gaming development. The company has reportedly been in the market for game developers, and rumors back in May even indicated that the position was somehow related to the iTunes Music Store. Could Apple be selling Zuma and Wik: Fable of Souls for the iPod in a few short months? It's all starting to add up to a real posibility.

Keep in mind that Microsoft, too, is rumored to be working on portable media gaming with its Zune project. Part of that effort will likely be centered on Qualcomm's BREW mobile gaming platform, which Microsoft recently licensed. By choosing BREW, Microsoft is adopting a platform that should make porting games a cinch, if those games aren't already BREW-based.

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Apple could follow a similar route. Rather than attempt to get developers to port games for the iPod itself, Apple may choose to center the iPod's gaming capabilities on an existing platform to maximize customer choice in gaming titles. Or the company could do both. Microsoft's plan is to provide more than one way to get games on Xbox Live Arcade and their mobile platform, and Apple would be wise to do the same.

Many questions remain, however. While there has been endless speculation on what the "true" video iPod would entail (giant onscreen click wheel, massive screen, onscreen keyboard), currently there is very little solid information on the product. Analysts are arguing that Apple's next wave of iPods is still months away, and it is currently believed that the video iPod itself is slated for a release that would follow the next major update. In short, it will be a long time before the turtlenecked Steve trots one out on stage, if ever.

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The report also indicated that ATR expects Apple to match if not exceed its own guidance of $4.2 billion to 4.4 billion in revenue for the next quarter, and they also expect the company to top $5 billion in the fourth quarter.

tiggapooh

Okay, so would that be a separate ipod just for games> Can't you already play games on the other ipods?