Although we're still waiting for Intel to launch its second-gen Arc desktop 'Battlemage' graphics cards for desktop PCs, with the latest rumors pointing to a December 2024 launch, the Xe2 graphics architecture is already out there as part of the company's latest Lunar Lake Core Ultra 200V mobile chips.
According to a new benchmark listing, Battlemage-next or Xe3 is already being tested internally as part of Intel's upcoming Panther Lake chips. No matter what happens with Intel's ambitions in the gaming GPU space, it certainly looks like Arc graphics will continue to be developed as APUs become more prevalent in mobile devices and gaming handhelds.
As part of its latest Q3 2024 Earnings Call, Intel CEO Pat Gelsinger noted that the future of Arc would involve fewer desktop SKUs and a greater focus on integrated graphics. It will be interesting to see if Intel releases an Xe3-powered desktop GPU or if the technology remains in the mobile space.
Regarding Intel testing its Panther Lake CPUs and Xe3 graphics internally, the 25W variant spotted on SiSoftware by @GawroskiT on X has 32 cores, which would be 4 Xe3 Cores for graphics. It also features a 1.6 GHz GPU clock, with the benchmark performance being on par with desktop Arrow Lake chips with 4 Xe Cores.
Based on this, Intel's main competition in graphics is not NVIDIA but AMD, which has made great strides in recent years by including RDNA 3 architecture in its mobile chips. This has led to several Mini PCs and handhelds delivering exceptional low-powered PC gaming performance thanks to all-in-one Ryzen chips. If Intel were to move away from desktop GPUs, it would still need to evolve its GPU architecture for low-powered devices to stay competitive.