Dean Takahashi reports that Microsoft is almost ready to start selling the next generation of the Xbox 360, code-named “Falcon”. Dean says that “Falcon” uses a 65-nanometer manufacturing process for both the CPU and the ATI graphics chip, reducing manufacturing costs and overheating for the console. Once the revision makes its way into the manufacturing pipeline, something Dean says will be completed this summer, Microsoft will have multiple options for the Xbox 360.
They can:
- Sell the Xbox 360 at its current price, and make a higher profit on every sale due to lower costs, as well as touting the lower temperature of the system.
- Lower the price of the 360 to improve sales, cutting off Sony’s still-expensive PS3 and better competing with Nintendo’s Wii.
- Improve the design of the 360, making it smaller.
- Add more features inside the 360 (like an HD-DVD drive), taking advantage of the fact that things are a lot more stable inside.
The point is, these new Falcon-based 360s represent a major change for the 360, getting it to be cheaper to make and finally ending the heat problem, and makes Microsoft far more competitive. The new chips cost half as much, which puts Microsoft in a great position against Sony.