Intel recently announced that it has canceled the development of its high-end Arc Battlemage “BMG-G31” GPU, based on the Xe2 architecture. This GPU was originally intended for the gaming graphics card market, targeting the needs of mid-to-high-end gamers. However, it now appears that Intel is shifting its strategy, abandoning competition in the high-end discrete GPU market and instead focusing on more cost-effective products and the integrated graphics sector.
Previously, Intel had planned to launch a high-end Battlemage solution with up to 24GB of VRAM, and multiple variants had been spotted in supply chain listings. The BMG-G31, as the flagship model, was expected to feature 24 to 32 Xe2 cores, paired with a 256-bit memory bus and 16GB of GDDR6 memory. Its chip size was larger than that of the BMG-G21 used in the current Arc B580 and B570, hinting at significant performance potential. However, according to industry insiders, Intel had already terminated the development of the BMG-G31 as early as the third quarter of 2024. The small batch of chips shipped by the end of 2024 was only for testing or evaluation purposes, with plans for a retail release completely abandoned. This decision means Intel will not be challenging NVIDIA and AMD’s dominance in the high-end gaming GPU market in the short term.
Despite stepping away from the high-end segment, Intel has not entirely exited the discrete GPU space. The Arc B580 and B570 graphics cards have gained a foothold thanks to their excellent price-to-performance ratio. Both are based on the Battlemage architecture’s BMG-G21 chip, with the B580 featuring 20 Xe2 cores and 12GB of GDDR6 memory (192-bit bus), and the B570 equipped with 16 Xe2 cores and 8GB of GDDR6 memory (128-bit bus). Real-world tests show the B580’s performance is close to that of the AMD Radeon RX 7600, with power consumption around 175W, while the B570 is better suited for lightweight gaming and everyday use, consuming just 150W. Intel has stated it will continue making “strategic investments” in the discrete GPU space, though its focus has clearly shifted toward offering high-value options rather than chasing peak performance.
Meanwhile, the Battlemage architecture’s performance in integrated graphics is also noteworthy. The Xe2-LPG graphics core, used in Lunar Lake processors, has debuted with significantly improved iGPU performance. Data shows that the Arc 140V iGPU outperforms the AMD Radeon 890M by about 16% in OpenCL benchmarks, demonstrating competitiveness comparable to AMD’s RDNA 3.5 architecture. Intel evidently aims to leverage the Xe2 architecture’s integrated graphics to capture a larger share of the laptop and ultrathin device market.
As for the next generation of discrete GPUs, Intel has yet to reveal concrete plans. The Celestial (Xe3 architecture) is expected to power the Panther Lake processors launching in 2026, but there’s no evidence yet suggesting it will extend to discrete graphics cards. Industry sources have mentioned that Xe3 and the even more distant Xe4 “Druid” architectures are in development, potentially bringing new Arc products in the coming years. However, given the cancellation of BMG-G31, Intel’s investment in high-end discrete GPUs is likely to remain cautious.
Looking back at Intel’s graphics journey, the first-generation Arc Alchemist (Xe1 architecture) products, like the A770, faced criticism at launch due to driver issues. Subsequent firmware updates gradually optimized performance, bringing it close to NVIDIA’s RTX 3060 Ti. Today, the Battlemage series has made notable strides in driver stability, with the B580 and B570 receiving generally positive reviews at launch. Users report a smooth experience, particularly in DirectX 12 games.
Market data indicates that Intel’s Arc GPUs have seen their desktop market share drop to less than 1% since Q2 2024, lagging far behind NVIDIA (around 80%) and AMD (around 19%). Nevertheless, Intel has not given up on its GPU business, opting instead to focus on less competitive segments.
Notably, Intel’s collaboration with TSMC continues, with Battlemage GPUs manufactured using a 4nm process, further reducing power consumption and costs compared to the 6nm process used for Alchemist. If the rumored 3nm process is adopted for Celestial, performance and efficiency could see another leap forward.
While the cancellation of the high-end BMG-G31 has disappointed some gamers, Intel’s strategic pivot may better align with its long-term interests. Competing head-on in the high-end market dominated by NVIDIA and AMD carries significant risks, but in the mid-range and integrated graphics segments, Intel can leverage its technical expertise and ecosystem advantages to carve out substantial opportunities. The successful launch of the Arc B580 and B570 suggests Intel has found its footing, and its future GPU roadmap may lean toward pragmatism and stability.