IBM to Power Next Xbox

IBM will be the brains behind not only the next Sony PlayStation video game console but also Microsoft's next Xbox. IBM and Microsoft have signed an agreement that lets Microsoft use IBM semiconductor-processor technology in future Xbox products and services. Few details are available about this development, except that Xbox's CPU will be based on IBM's "family of state-of-the-art processors." Similar to Microsoft's agreement with ATI for graphics technology in the next Xbox, the new agreement doesn't include manufacturing. Microsoft will need to find other companies to build the components that make up the next video game console. Microsoft will probably be actively involved in designing chip technology that integrates ATI and IBM's technology. Whether and how Microsoft will offer support for first-generation Xbox games on its next console remains unclear. The current Xbox uses an Intel x86 processor and graphics technology from ATI's competitor, NVIDIA.

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