Xbox 2 News - Xbox 360 News

Intel, NVidia, ATI... out of the picture?

Recent news stories report that Microsoft may design their own chips for the Xbox 2 design. This means that the manufacturers of the current Xbox console may be out of the picture. For the Xbox 1, NVidia had won the bid to supply the graphics chips for the Xbox, and Intel won the bidding war against the CPU manufacturer AMD. Now, in September 2005, it has become clear that the graphics chip of the Xbox 360 console is a custom designed chip by ATI, whereas Nvidia custom hardware is in use to power the Playstation 3.


NVidia and MS... the end of a beautiful relationship

Nvidia's share price rose after they reported doing quite well even though worldwide Microsoft Xbox sales were below expection. Insiders report that Microsoft didn't like Nvidia's refusal to lower the cost of their chip set, and apparently Microsoft is getting ready for legal action against Nvidia, based on a breach of agreement between the two companies.


XBox 2/360 is a DIY for Microsoft

The main reason for this move is of course the cost for Microsoft for the use of these components in the Xbox, which are largely responsible for the high price of the console, making it extra-hard for MS to offer the console at a reduced price. The surprising news was that Microsoft aims not only to develop and produce their own graphics chips, but also the main CPU, by which Microsoft plans to shake off its dependency on X86 suppliers. Once again, the reality is that Microsoft opted for a Custom IBM multi-code PowerPC CPU that each run at 3.2 GHz.

Sources say that Microsoft has posted a request for quotation for a DirectX9/10 microcode engine, the part of the chip that decodes and processes DirectX instructions.


Rather receive than pay license fees

Microsoft's move into chip development and production was foreshadowed by their recent acquisition of Silicon Graphics patents. This means that they can implement many features into their chips that otherwise would require licensing, AND it means that other chip manufacturers like ATI and NVidia will have to start paying Microsoft license fees.


MSIL all the way

The CPU for the Xbox 2 is rumoured to be designed to be a processor that can decode and execute instructions in Microsoft Intermediate Language (MSIL) while at the same time being able to run x86 code, to remain compatible with Xbox 1.


The Xbox 1 has underperformed in terms of projected sales. Forced to follow the price reductions of the Sony's and Nintendo's video game consoles, the Xbox price drop to $179 [now only $149 - Aug 2004] means that Microsoft is making at least $100 loss on each console sold. The plan is to subsidise this with increased software sales, but this calculation may only provide positive resuls in years to come, and perhaps only with Xbox 2. Not unlike Sony's drive to develop a "home station" that would function as the center of a home entertainment system, Microsoft plans to make the Xbox 2 the machine that will take over our living rooms, providing not only video game entertainment, but also online functions, and direct-to-disk digital TV recording. Microsoft has deep pockets and may venture on undeterred of the moderate success of Xbox 1, but it may take Xbox 2 or Xbox 360 or even Xbox 3 or 4 before Microsoft's plan for global domination of our living rooms becomes reality. In the US, the Xbox 360 release date has been revealed - the official launch date is Nov 22 2005.

  Xbox 2 = Xbox 360. First pictures!!