mrpayroll

http://story.news.yahoo.com/news?tmp...h_microsoft_dc

50 minutes ago

NEW YORK (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) on Monday said it would turn to International Business Machines Corp. (NYSE:IBM - news) for microchip technology that it will use in the next version of its popular video game console, the Xbox.

Redmond, Washington-based Microsoft, the world's largest software company, used a chip from the No. 1 microprocessor maker, Intel Corp. (Nasdaq:INTC - news), in the first version of its Xbox, which was released in 2000.

Richard Doherty, of Seaford, New York-based Envisioneering, a technology advisory company, said that IBM's PowerPC chips consume less power and run cooler than other chips. They compete with chips from Santa Clara, California-based Intel and Advanced Micro Devices Inc. (NYSE:AMD - news), a much smaller microprocessor maker in Sunnyvale, California.

"Intel had wrestled away the design win for Xbox from AMD at the last minute, and this will probably be quite a surprise to Santa Clara this morning that the next generation from their ally in system design, Microsoft, is going to their rival," Doherty said.

IBM, based in Armonk, New York, has licensed microprocessor technology to other companies and makes chips for Apple Computer Inc. (Nasdaq:AAPL - news) and for the Nintendo (news - web sites) gaming console, among others, in its factories.

IBM opened a new semiconductor plant in East Fishkill, New York earlier this year and has been trying to lure new customers to the plant.

The next version of Xbox is expected to be announced in January by Microsoft founder and Chairman Bill Gates (news - web sites) and to be on sale next fall ahead of the holidays, according to Doherty.

IBM is also working with Sony Corp (news - web sites). on a chip for its next version of the PlayStation gaming console. Earlier this year, Nvidia, which makes graphics chips often used in gaming, also turned to IBM to start making certain of its chips.


I hadn't heard that the next XBox was coming in the Fall of 2004, before!

Chris

Galanthas

The next version of Xbox is expected to be announced in January by Microsoft founder and Chairman Bill Gates (news - web sites) and to be on sale next fall ahead of the holidays, according to Doherty.

I do hope that is not accurate. That isn't good news for the industry. Shortening the lifespan of consoles is not a good thing at all, this industry isn't based on the PC markets 6 month-12 month hardware cycle.

young

heh, as long as it's backwards compatible, i have no problem w/ an new and improved upgraded xbox. mine's feelin' a bit dated.

3 years is a long time for a product like consumer console games. the only real holdback was compatability, imo.
--

i am skeptical of the next holiday season as the target date though. how the heck are they going to move that fast? new chip, new video card, getting games made, etc.

Josh H

That would suck, a three year lifespan would keep me from buying another MS system EVER. I want at least 5 years of solid support for my $.

CreatureX

So Xbox 2 will be made from ATI and IBM components? Just like my Gamecube! Smart move MS!

goLUCKY

I think that M$ wants to be on the 5 year plan also, but since they started the xbox mid-lifespan, they have to get nextbox out in tandem with the new sony box to be competitive.

Josh H

All indications are that Sony is a ways off on the PS3 and has no plans to launch first next generation.

edytwinky

3 years would really piss me off. Oh well, I've been thinking about getting rid of my X-Box anyways.

IC_Freeze

i don't think Intel made any money from the xbox deal anyways

Gromit

Yeah, I think the profit margins for Intel were so small that I wouldn't be surprised if they aren't too worried.

I wonder if this is just a marketing victory. No real money to be made, just another way to keep your visibility high.

DaveNinja

wonder if they''ll use the G5 chip

joshd2012

EA and THQ have both said that they haven't received DevKits from Microsoft yet. Assuming that a game takes roughly 18 months to develop (their words, not mine), it would mean that the Xbox2 will be out 6 months before any games could be released. Somehow I doubt that this is accurate.

jmaxlow

This release date may be true, but mainstream press coverage of the gaming industry is often wildly inaccurate. I just don't see this happening.

Flay

It's basically Sony stategy thrown back in thier face. Bust out your console a year before the competition and reap the benefits.

Joe Sixpack doesn't give a crap about system lifespans.

TOPDAWG

I agree with you %100 it seems xbox owners have the most money to burn out of console owners. However I'm not ready to burn money on a new system I would want like 6 games or something. I'm hoping M$ does not look at the owers and say well they get the cash they buy the most games for thier system.

I can't stand the PC crap I tried it with a $200 card to gave it a shot damn sure was not worth it to me. I also think this story is BS.

joshd2012

Um... Sony was just following the 5 year life cycle of game consoles. According to this report, Microsoft is breaking that.

*Reads article again.*

It says that the X-box was released in 2000, but wasn't it released in 2001?

Trigger

That's too soon... however, if it's backwards compatable, it might just gain enough momentum during the year by itself that it'll maintain a lead for the next generation - it could also backfire if the PS2 continues to outsell it for the first year and then the PS3 squashes it. Tough call. If it were my company, I wouldn't risk it. I also wouldn't use IBM to make my chips.

speedyray

I understand not risking it, but wy would you advise not using IBM. They are pretty much known as a market leader in high end chips. I mean I'm sorry if Joe Six Pack identifies with Intel's crappy stuff, but I would pick the superior stuff anyday over the mainstream stuff.

Trigger

I just wouldn't. I'm not a joe six pack... the reason isn't cuz I'd rather have mainstream either. I think their alignment with the PC is working for them and I wouldn't try to move away from that. I also don't agree that Intel and AMD make crappy stuff compared to ibm.

Dan Average

I'm calling bullshit on the 2004 thing. Especially since I've never ever ever seen it mentioned elsewhere and Microsoft's press release doesn't mention it.

CreatureX

It would be a huge mistake for MS IMO. Especially since we all seen how fast they dropped the price of the Xbox. If Xbox 2 were released that early, I bet most people would wait for the quick price drops to happen yet again.

RyoHazuki

YBox?

CreatureX

More speculation indicating that Xbox 2 may not be backwards compatible:

http://arstechnica.com/archive/news/1067882060.html

Galanthas

Microsoft will not gain and lead the next generation of consoles, no chance what so ever. No Japan=no number 1 in the console industry. I don't see the Xbox 1,2 or whatever else fanbase getting to the point in Japan that Sony or even Nintendo has, ever.

The Xbox has been defined with a western slant in regards to what it's fanbase wants, it's U.S. fans don't seem to care for Japanese games on the Xbox compared to the other two systems,which is not surprising since I would suspect alot of the Xbox userbase is made up of PC gamers that don't feel like upgrading their comp all the time. The only thing Microsoft has is hoping Sony somehow screws up.

Backward Compatible is a non-issue since Sony will probably be doing the same thing, just with the PS1 and PS2 backward compatibility I would suspect. To be honest though I have realized backward compatibility isn't that big of a deal generation to generation. I rarely play my PS1 games on the PS2.

Trigger

I won't say where I got the following info... You can believe it or not, I won't try to defend it. I won't repeat it either. This is what I heard and I'm taking it as more or less fact.

Xbox 2 won't release in 2004... that was just made up by the press.
Xbox 2 will release at the same time as PS3.
Xbox 2 will NOT be backward compatable with Xbox 1 software.
Xbox Live will be integrated with their next OS - Longhorn.
Xbox 2 will ship simultaneously worldwide this time
PS3 will only be backward compatable with PS2 and not ps1 software (so what, with the PSP coming anyway)
PS3 will use nVidia graphics instead of their own gpu.

No surprise, but microsoft had an awful contract with nVidia and in order to be backward compatable, they would have to continue with the terrible contract. After hearing about the IBM processor they are planning to use, I change my opinion about it and I think it's a good idea now.

I believe Xbox 2 will have superior hardware to PS3. I don't think the fact that they won't be backward compatable will hurt them, but it certainly won't help them get the momentum that PS2 had. I think all 3 consoles will probably release at the same time in 2005. I think PS3 will probably come out on top, but the gap will be much much smaller between it and the Xbox this time. Gamecube 2 or whatever it will be called will probably repeat the numbers of this generation and will come in 3rd. That's if it releases with the other 2. It's still possible that it will lag behind.