Here’s a trade secret that Microsoft is unlikely to publicly acknowledge.
Sony’s cutting the price on the PlayStation 3. How will Microsoft react? We’ll find out soon. But a key part of the strategy is going to be a project code-named Falcon.
Falcon is the name for the latest internal electronics in the Xbox 360. It will have an IBM microprocessor and an AMD/ATI graphics chip that are manufactured in a 65-nanometer production process. These are cost-reduced chips that do the same thing as their 90-nanometer predecessors, but they’re smaller.
With smaller chips, Microsoft gets a bunch of benefits. They won’t generate as much heat. So the risks of overheating — one of the main reasons behind Microsoft’s billion-dollar write-off for repairs and extended warranties — are much lower. The chips may also cost half of what it took to make them before because they use less material and fewer manufacturing steps to produce.
Source:→ Mercury News
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