65nm 360 chips in production 'last two quarters' - 45nm on the way

Though we're pretty confident the Xbox 360 price drop is coming sooner than "this Fall" – more like August 12th, if you want to be specific – we've had the entire Fall season marked on our Microsoft Executive Swimsuit calendar with "65nm chips" reminders. Those weary of the dreaded RROD have been looking forward to the smaller, cooler (and cheaper!) chips being included in the new systems, codenamed Falcon, but the extremely paranoid may want to hold off for the 45nm version.

"As 65nm just started production in the last two quarters, you would expect 45nm to [begin production] about 18 months from that timeframe," said the President of Microsoft manufacturing partner, Charted Semiconductor. That means production on those new even smaller and even cooler chips won't begin until late 2008, early 2009. If that's too long to hold off, take comfort in knowing that those 65nm chips have been produced for some time, and should be making their way to retail Xbox 360s soon (astronotip: Fall starts on Sept. 23 this year, so mark your various themed calendars).

This article was originally published on Joystiq.