ATI slashes factory Warranty period

The proviso is that it only applies to retail "ATI" cards, not cards made by third-party vendors using the ATI chipsets.

It makes one wonder whether they (ATI), are changing their approach to production (limit the manufacturing of ATI branded cards, and expand the chipset provider business), or just balancing the budget?

Certainly a good reason to research the various manufactured cards, chipsets, and warranties before purchasing.

Companies need to allocate portions of their budgets to cover possible warrenty repairs on their products each year - money that can't legally be spent elsewhere. This doesn't necessarily mean that ATI is starting to axe quality. When these things happen it's usually because companies want to free up cash to devote to other areas; having to only set aside money for 1 year instead of 5 years will do that.   Corporations typically only make this move when they have a track record of low defects, since it gives them justification to make that kind of change.

Of course, there are always exceptions.