Lower-Cost 360 in the pipeline

According to Mercury News, Microsoft is developing a new version of the Xbox 360 codenamed ‘Falcon’, which has reduced production costs

The platform holder will switch to a 65-nanometer production process, which will mean smaller microprocessors and graphics chips for new consoles, in comparison to the current 90-nanometer processors.

Apart from the technical benefits – which include an increase in general reliability and a reduced chance of overheating – the drop in production costs could pave the way for a reduced price tag.

The ‘Falcon’ Xbox 360s are expected to emerge this autumn

“We have a bunch of different projects that cost reduce and improve quality as you find issues, as does our competition,” said Peter Moore, head of games at Microsoft. “Once you get millions in the field, you learn about the box under all kinds of different circumstances, you can adjust and tweak what you do accordingly.”

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