In a joint announcement,
Microsoft and the manufacturer of the Xbox 360's CPU, Chartered Semiconductor, have announced that the console's
processor will receive an upgrade in 2007. The upgrade will move the chip's design to a 65nm manufacturing process (the
existing CPU is based on 90nm technology) which will provide lower power consumption and a smaller heat output. It's
expected that the upgrade will not alter the processor's performance as this could cause compatibility issues with
games already released or currently under development for the Xbox 360.
Although the launch of the Xbox 360 was touted by Microsoft as a successful one, a vocal minority of people reported that their consoles were crashing due to overheating. VNUNet points out that console manufacturers often take advantage of new processor technology as it becomes available, so this may not be a direct response to Xbox 360 overheating issues.
[Thanks, SloopyDrew. Via VNUNet]