Codenamed Project 'Falcon', the project is to push IBM's triple-cored PowerPC processor and DAAMIT's Xenos GPU down to 65nm, from the 90nm they're made at currently. As any fule no, iterating process technologies results in smaller chips, cheaper costs and less power consumption.
The roll-out of the new chips has been credited with driving the Vole's confidence that it's warranty problems are over.
Sony recently reduced the price of its PS3 by $100, a move thought to be simply adding $100 of pure cost to Sony's business plan, since no hardware revisions have been made and the company already sells the console at a healthy loss. The move to 65nm will enable Microsoft to cut the price of its Xbox 360 console and possibly still make a profit.
Indeed, rumours around LA this week are that Microsoft will use its E3 press conference to announce a price cut for the console, sparking a price war with Sony that the Japanese company has little hopes of winning. µ
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