UK's VideoLogic to supply Gateway 2000

Shares in UK graphics chip designer VideoLogic leapt nine pence in early trading this morning as the City digested news that Gateway 2000 will use its PowerVR architecture in a new home PC/TV range.

Gateway will tap VideoLogic's PowerVR-based Apocalypse 3Dx card for its Destination systems. The direct seller says that currently it only plans to sell the units in North America.

Manufactured by NEC, the PowerVR graphics processor recently scored another big design win when Matrox said a new card called the m3D will use the PowerVR PCX2.

A powerful rumour also suggests that Sega will use PowerVR chips in a new generation of console products; former Sega supplier 3Dfx is currently in legal dispute with Sega and NEC over the termination of its contract.