IBM to provide processors for Xbox2

Posted on Monday, November 03 2003 @ 20:45 CET by Thomas De Maesschalck

Microsoft has announced that it will use one of IBM his PowerPC processors in his next-gen Xbox. A few months ago we already posted a story that Microsoft will use a graphics solution from ATi in his new Xbox.

Compatibility with older Xbox software could be provided by emulation technology Microsoft acquired in February from Connectix, which sells Virtual PC, allowing Intel-based software to run on PowerPC chips.

For IBM, the deal is an important coup, placing it in a strategic position in rapidly growing consumer electronics markets. It already provides chips for Nintendo, the maker of GameCube, and is working with Sony and Toshiba on advanced chip designs for futuristic types of consumer electronics devices. The deal also boosts IBM's foundry business, its contract chip-manufacturing group, which has been losing money.

"IBM has been the hungriest to get the business for its foundry," said Kevin Krewell, head of the Microprocessor Report. "But it will be a while before it will see revenue from this deal."

Source: Financial Times

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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