Say you are Intel.
WHY THE HELL WOULD YOU MAKE INTEGRATED GRAPHICS TO COMPETE WITH 24 PIPELINE, 600MHz core speed, 50GB/s memory bandwidth, 8 vertex shaders, part, say like Geforce 7900GTX or ATI X1900XTX?? They simply WON'T.
X1900XTX has over 300 million transistors. The die size on that is close to 300mm2.
Intel's integrated graphics bring $7!!!
Now if any company can bring that to be even entry level graphics, they have brought a miracle(X1300 has like what?? 75 million transistors?? Chipset typically has no more than 20 million at most, will they quadruple the die size for X1300 performance?? NO!!).
EPIC is stupid to say that. Intel has the biggest graphics market BY FAR. BTW, the other integrated graphics, ATI's Xpress 200 chipset with X300 integrated:
http://www.anandtech.com/showdoc.aspx?i=2427&p=3
Can that bring playable frames?!?? No.