Xbox 360 CPU drops to 65nm in '07

Part of Microsoft's master plan for the Xbox 360 has always been to own the chip designs, so they'll be able to farm out their production to other firms, enabling them to get cheaper and smaller chips. You can see Sony exercising this option in their slim-PS2 and Microsoft using it to great effect in the Diet Xbox™. Keep in mind, of course, that no such Xbox exists in this world.

Microsoft has inked a deal with Chartered Semiconductor Manufacturing of Singapore to manufacture Xbox CPUs using a 65 nanometer SoI (silicon on insulator) process. Chartered manufactured the 90nm SoI processors used in the Xbox 360 currently.

The move to a smaller chip should increase yields and lower costs, while enabling the processor to run cooler which will hopefully obviate the (perceived) need forallthosecrazycoolingschemes. Production of the smaller processor is expected to begin first quarter 2007, which means we can expect the new superslim Xbox 360 revision-B to debut shortly thereafter, right? No? Same box, smaller processor, cooler design? Fine.

[Thanks, DocZhivago; via Joystiq]