For analyst Nathan Brookwood, Intel has no other choice than to start building discreet graphics chip in order to keep dominance in the chipset market.

Even the old integrated ATI or Nvidia chipset provide a better graphical experience than do the Intel integrated graphics. Which is not all that surprising because they are taking what had been their high end discreet graphics and one generation later putting it in a chipset.

And,

Going into discreet graphics is the only way to get people have the design opportunity to build something that is really fast which then you can cost reduce. But the graphics chip market moves at a much faster pace than the CPU business. That's why AMD went and acquire ATI because there's no way they could have done it internally.