Most important is 's announcement Wednesday that to run Windows .
Nvidia also announced Wednesday that one unnamed PC maker planned to build a mini-PC using the Ion platform. And No. 3 PC maker said earlier this week that it was interested in building Ion-based PCs this year.
Ion is an design that combines its GeForce 9400M GPU, the mobile version of one of its most powerful graphics processors, with an Intel Atom CPU.
The motherboard, amount of RAM, and other specifications are not dictated by Nvidia, said a company spokesman, Ken Brown, but most expect Ion systems to use mini-motherboards suited for netbooks and mini-PCs.
Microsoft said its testing showed that Ion-based PCs will be able to deliver 1080p HD, video, including Blu-ray movies, "exciting" videogame play using DirectX 10 video technology, support for premium Vista features such Aero Glass and Flip3D, and faster video transcoding and photo editing because of the Nvidia graphics chip.
Jon Peddie, an analyst with Jon Peddie Research, said the Vista certification was a "critically important" affirmation for Ion.
"Netbook builders haven't been able to get satisfactory operation with Vista. Part of the issue, maybe all of it, is the graphics," Peddie said in an e-mail. "Nvidia's theme is 'build a better notebook' with Atom by using Ion. And the proof of that is the certification."
With rare exceptions such as , virtually all netbooks today run Windows XP rather than Vista.
That's partly because of XP's lower cost, but mostly because they lack the horsepower to support Vista, said Ian Lao, an analyst with In-Stat. The under-the-hood limitations prevent most netbooks from showing HD video, supporting more than one external display, or playing the latest videogames, he said.
Lao said that Ion delivers better performance than competing designs using Intel's integrated graphics chips, and at a similar price.
Nvidia promises that PC makers will start to deliver small and slim Vista PCs based on Ion this summer, for as little as US$299, said Brown.
Nvidia has already released Windows 7 drivers for Ion, said Brown. He declined to comment on when Ion would be certified for Windows 7. is based on Vista but is widely reported to require fewer system resources than its predecessor.
While most focus has been on Ion's potential to boost netbooks, Nvidia said Wednesday at a press conference in Taiwan that its first confirmed Ion customer is an unnamed PC maker that plans to build a mini-PC.
Lao said Ion will enable mini-PCs using dual-core Atom CPUs to close much of the performance gap with larger desktop models. And because the Atom and GeForce chips are so efficient and generate so little heat, PC makers can avoid the use of cooling fans, which will allow for smaller, sleeker designs than Apple Inc.'s Mac Mini -- at a lower price, he said.
Acer Inc., , also said this week that it was considering using Ion in its PCs this year.
"You will see us [Acer] looking at this technology much closer in our second half products," Sumit Agnihotry, vice-president of product marketing for Acer,
Lao expects other Taiwanese PC makers to throw their support behind Ion soon.
Intel GPUs pushed aside
Ion uses only Intel's Atom CPUs, But it substitutes Intel's GPU for Nvidia's own.
That could cut into sales of Intel's GPUs, , according to Jon Peddie Research, but generally has an inferior performance reputation versus GPUs from Nvidia and AMD's ATI subsidiary.
Longer term, Ion will challenge Intel's attempts to define the segments of the PC market to maximize its own CPU profits, said Lao. For instance, PC makers will be able to build full-sized 'value' laptops with 15-inch LCDs that run Vista for less than $400, the current price barrier, using Ion and dual-core Atom CPUs.
This lets them avoid pricier Centrino CPUs, said Lao. And it allows PC makers to sell more systems while reaping the same profit-per-PC in these tough economic times.
Intel did not respond to a request for comment. Lao expects Intel to respond to Ion by aggressively pricing bundles of its Atom CPU and integrated GPU.
"They just can't sell at or below cost and get in trouble like Samsung and Hynix," Lao said, referring to the two firms that were found guilty of dumping memory onto the market.
Nvidia's Brown noted that Intel has made public statements that it will not obstruct the sale of Atom CPUs to PC makers interested in using Ion.
"I hope they live up to their word," Brown said.