In the second quarter of 2008 it will no longer be a two way skirmish of red versus green. It will be an all out three way war triangle between red, green and blue! Oh noes! DigiTimes is the site reporting on this industry changing news and I for one wish they would have just kept quiet about it. We have all become somewhat fond of the two way struggle for discrete graphics card supremacy. A dichotomy if you will. Good versus evil, Pepsi versus Coke, paper versus plastic, creationism versus evolution.
Details are scarce, but DigiTimes has speculated that Intel will need to find a way to compete with AMD and Nvidia's feature set in their current line of graphics cards. DirectX 10, Pixel Shader 4.0 and possibly even their own form of a dual card arrangement like SLi or CrossFire. Intel does make more than several motherboards with more than one PCI Express slot after all.
Instead of taking the all or nothing approach by trying to topple AMD and/or Nvidia by making cards that outperform their top-end parts, Intel will use a much safer and smarter opening strategy. They will begin in the much more popular mid-range area first. Once they have the experience, driver stability and support from game makers they could then attempt to slay the two headed beast.