For the past few years PC processor maker Intel has been preparing a high-end graphics chip code named "Larrabee" that it hoped would be used for, among other things, high performance in PC games. Now it looks like those plans have been shut down, most likely for good. As reported by VentureBeat, Intel has now admitted it has canceled plans for a consumer product based on the Larrabee design. Intel still plans to release a stand alone graphic chip product and it says it will reveal more about its plans in that area in 2010.

While Intel stated that Larrabee will still live on as a software development platform, it's clear that its plans to go up against Nvidia and AMD on high-end PC gaming graphics have suffered a major blow. Intel has also been developing a game under the code name of Project Offset. While its development has been in stealth mode for most of its life, some have speculated the game's development was being used to help market the Larrabee graphics chip. It's currently unknown what the current status of Project Offset is.