Code name 'Falcon'!!!
Sounds like a new Tom Clancy book or video game right? Well it's the code name for the new internal electronics in the Xbox 360, which will have a IBM microprocessor and an AMD/ATI graphics chip that are "manufactured in a 65-nanometer production process. This is a cost reducing chip that will most likely run cooler than the 90-nanometer that the 360 comes with today.
This should allow for a smaller Xbox 360 and give Microsoft the ability to slash the price of the unit, in response to the PS3 price cut. Of course there's no word from Microsoft about the chip change, and anything can change.
Hit the jump for more details. [Mercury News via G4TV]
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