One of Intel's gaming gurus has put finger to keypad and come up with a blog entry on how Intel's multi-core CPUs could mean the final days for GPUs.
The crux of the argument is that ray-tracing is the future of video game graphics. Whilst GPUs are great rasterisation cores, CPUs are more suited to ray-tracing. Since ray-tracing games allows for better/faster/more realistic graphics scenes, this means that Intel is on course for world domination.
The argument is compelling. Real-time ray-tracing has been considered the holy grail of graphics rendering for many years now. The news, presented at IDF last month, that Intel's team had managed to port Quake IV to a dedicated ray-tracing engine was no insignificant announcement.