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MS and Nvidia had legal disagreements over price of the chip in the current Xbox i think that is why MS went to ATi(MS wanted to pay lower after the contract was already signed i think)

are these the shots you saw???
http://www.ps3portal.com/Pictures/blimey.jpg?PHPSESSID=6f3144adb36246e41e2cae7beddf1297

from old reading and what i can remember about them, the reason for MS switch from Nvidia to ATi was the legal trouble the two went through over the royalties or something about the chip in the...

yep it's going to be quite a battle between the graphic card companies in the console arena... As for HL2 being better on ATi's cards, well see when HL2 releases its support for HDR, it made Far Cry...