It seems that Intel's aspirations in the graphics market are dead, for the near future at any rate.
Bill Kircos, who's director of Intel's Product and Technology Media Relations Global Communications Group breaks the bad news to those holding their breath:
We will not bring a discrete graphics product to market, at least in the short-term. As we said in December, we missed some key product milestones. Upon further assessment, and as mentioned above, we are focused on processor graphics, and we believe media/HD video and mobile computing are the most important areas to focus on moving forward.
Our top priority continues to be around delivering an outstanding processor that addresses every day, general purpose computer needs and provides leadership visual computing experiences via processor graphics. We are further boosting funding and employee expertise here, and continue to champion the rapid shift to mobile wireless computing and HD video - we are laser-focused on these areas.