It says the R500,the chip that will power the Xbox2 has taped out and it supports pixel shader ver3.0.
It will be similar to Ati's R520,the next generation product for the PC.
Developers have been working on Xbox2 projects with Radeon 9800 until now so they have 2 months to code demos that take advantage of the real hardware in time for the launch of the Xbox2 on January 5 at the Consumer Electronics Show.