Atom is a big deal. With the success of the Asus EEE PC and Apple iPhone, the desire for more performance in smaller form factors is slowly ramping up. Imagine a handheld device like the iPhone, but with the power to run a game like Unreal Tournament 2004 and all the other typical PC applications with no slowdowns. Imagine the headache engineers must be endure in order to squeeze so much power into such a small form factor with current processor offerings.
The new Intel Atom architecture is hoping to achieve all that.