A 65 nanometer chipset revision is underway for the Xbox 360.
Following on the heels of a Sony's $100 PS3 price cut and Microsoft's own decision to extend Xbox 360 warranties, the Redmond-based giant has reportedly developed a revised chipset for its console.
Code-named "Falcon," the new chipset is being manufactured in a 65 nm production process, compared to the existing 90nm units.
The smaller die size should reduce heat consumption and costs. Excess heat is widely believed to be a major factor in the abnormally high hardware failure rate for the 360, which Microsoft had downplayed until its recently-announced warranty extension.
The move could also foreshadow an upcoming price drop for the console, which has clung to its original retail price since release.