CWmike writes: Intel is considering hardware-based acceleration for Google's new WebM video file format in its Atom-based TV chips if the format gains popularity, an Intel executive said on Thursday. Announced last at Google I/O, WebM files will include video streams compressed with the open-source VP8 video codec, which was acquired by Google when it bought On2 Technologies in February. 'Just like we did with other codecs like MPEG2, H.264 & VC1, if VP8 establishes itself in the Smart TV space, we will add it to our [hardware] decoders," said Wilfred Martis, a general manager at Intel's Digital Home Group. Meanwhile, Intel also abandoned the discrete graphic market. Why? Intel is learning a hard lesson in chipmaking reality: Building a graphics chip is hard, writes Chris Null at Yahoo.