Sunnyvale (CA) - AMD is putting more focus on the mobile graphics market, as it tries to bring Xbox 360 visuals to cell phones. The chip giant has launched a new set of tools for mobile developers.

AMD, which merged with graphics card maker ATI last year, says it is already working with game developers to incorporate the next-generation visuals for future cell phones. It says that phones and other mobile devices equipped with the ability to run the new graphics engine will be available next year.

ATI was a pioneer in developing advanced graphics chips for cell phones. Nvidia has since also gotten in the market. The battle to increase visual power on cell phones has been ongoing for many years.

The question that remains, however, is whether Americans are ready for immersive mobile games. It is a multi-million dollar industry, but is made almost exclusively of "casual" titles like card games and arcade classics. Other ambitious cell phone game projects have failed. For example, Nokia’s enormous investment in the N-Gage 3D gaming phone ended up as one of the most costly flops in the company’s history.

Still, AMD says this new initiative is what consumers want. "We are driving the creation of truly compelling content for the next-generation mobile gaming devices that consumers demand. This industry-wide effort will help ensure a robust handheld gaming ecosystem," said AMD VP Paul Dal Santo.