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DG1 isn't remotely related to Arc. For one, it's not even using the same node nor architecture.

That's not quite true. The Arc was originally known as the DG2 and is the successor to the DG1. So to say it isn't "remotely related" is a bit misleading, especially since we have very little information on the architecture.

For some comparison, that's a 30W 80EU part using 70GB/s memory. DG2 is supposed to be 512EU part with over 400GB/s memory. GPUs generally scale pretty well with EU count and memory bandwidth. Plus it has a different architecture which may be even more capable per EU.

The DG1 isn’t designed for gaming, but it is better than integrated graphics.

Just to add on that, DG1 was comparable to integrated graphics, but just in a discrete form factor. It was a tiny bit better because of higher frequency, I think. But even then it wasn't better in all cases, if I recall correctly.

This won't be the same as the DG1