Microsoft (MSFT) is poised to ship new Xbox 360 consoles featuring chips made with IBM’s (IBM) 65-nanometer process, reports Dean Takahashi of the San Jose Mercury News. The machines will not yet contain 65-nanometer graphics chips from ATI (AMD), he says, but they could still be more stable than the consoles on the market today, which have suffered from overheating problems.
Microsoft’s troubles with the current Xbox 360 design have given the company’s game division a black eye lately. Rampant engineering problems have caused some of the consoles to overheat and lock up; Microsoft has said it will take a charge of more than $1 billion to deal with repairs. The company also said today that some of its Xbox 360 Wireless Racing Wheel accessories have reported that the item can overheat and spew smoke when plugged into an electric socket.
Still, the Xbox 360s with the new 65-nanometer design, code-named Falcon, could pose some challenges for Microsoft, Takahashi says:
Meanwhile, Sony’s (SNE) PlayStation 3 has had its own challenges; its high price (starting at $500) has kept many consumers
at bay, perhaps helping Nintendo’s Wii console to establish itself as the mass-market favorite.