Xbox 720 will be 'powered by AMD

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Just hours after talk of the DS 2 first materialised, eyes has now turned to the next Xbox, with reports claiming that Microsoft's next machine will use AMD's GPU tech.

Tech site Fudzilla – which has a mixed record of success with trade speculation – is suggesting that AMD will continue its partnership with Microsoft after developing the Xenos custom GPU for the 360.

We've learned from industry sources that AMD has already won the GPU deal for the next generation XboX console,” the website says.

It looks like Microsoft was happy with first Xeons GPU and it wants to continue using the same, especially since the new ATI GPU should keep the compatibility with legacy games.”

For the full story head over to Develop.