Intel re-confirms it is backing off from creating high-end discrete graphics hardware solutions based on its Larrabee technology. NVIDIA and AMD’s ATI division are the big winners in the short term.

Intel has announced in a corporate blog that it will not pursue building high-end discrete graphics components. The announcement is a restatement and expansion of its previous announcements regarding the fate of Larrabee technology.

Intel already ships plenty of graphics technology, in chip sets and consumer-level processing, and that will continue. It will also continue to expand its built-in graphics processing on its low-power Atom CPUs.

The Larrabee technology was to be Intel’s move into separate, specialized processors, where the market is now dominated by NVIDIA and AMD’s ATI subsidiary. “We will not bring a discrete graphics product to market, at least in the short-term,” wrote Intel representative Bill Kircos in the blog post. He also restated Intel’s remarks from December 2009 that the company “missed some key product milestones.”

Intel CEO Paul Otellini spoke about this an an analyst meeting earlier this month, when he said Intel had “taken the risk essentially associated with the new architecture of Larrabee out of our roadmap over the next few years, so we have the flexibility to stay competitive while still working on it.”