It would appear that the market can only bear so many Atom N2xx/N4xxx-based netbook models with news that Taiwanese notebook maker MSI is rumoured to be slowly making its way out of the netbook market.

MSI was one of the major movers in the market during 2008 on the back of its popular 10-inch Wind U100-series models.

In a report on digitimes.com, the company is rumoured to be planning to concentrate mostly on single-core models and will “gradually step out of the market and focus on traditional notebooks”.

Notebook vendors have long been concerned that netbooks had the potential to canabalise sales of bigger (and more profitable) notebooks, however, with no noticeable performance gains over the last two years, netbooks may be becoming a stagnant pool of disappointment with users.

PC giant HP is hoping that it can grab at least second-spot on the netbook sales ladder after splashing out on Intel’s new dual-core Atom N550 processor, which should see around 50-60% performance improvements. HP is expected to release new dual-core netbooks in 2011.

Whether MSI follows suit remains to be seen.

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