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Kotaku
We've long suspected that Microsoft was aiming to shrink their 90nm Xbox 360 chipset down to the 65nm scale. The smaller components use less electricity, run cooler, and most importantly, are cheaper to mass-produce. In a recent update by reporter Dean Takahashi, this project both exists and sports a wannabe name: Falcon.
Microsoft is in the process of qualifying the new Falcon chips and motherboard this summer. I expect it will launch Xbox 360s with the new Falcon innards this fall.This newer, cheaper chipset will offer Microsoft more room to play with on their balance sheet—possibly enough to counter Sony's recent PS3 price drop with one of their own—but not for at least a few months. Reasons for delay include a shortage of falconer gloves and the difficulty of training a bird to fly over Sony and crap on their head. Microsoft's Next Move [mercurynews]
