Microsoft will be revamping the innards of its 360 with a new 'Falcon System'. The Falcon system will use a 65 nanometer production process as opposed to the 90 nanometer production process currently being used. this will in turn lower production costs and give more space to the insides of the 360.

Of course in other words, it means that there definitely will be a price cut.

According to a Mercury News report, Microsoft will switch to a 65-nanometer production process, meaning new consoles will feature smaller microprocessors and graphics chips as opposed to the 90-nanometer processors found in current models.

The smaller, more cost-efficient 360 innards will add a range of benefits to the system, while lower production costs would also facilitate any plans for a future price drop.

If these new production methods are implemented, overall console reliability would be increased. The risk of overheating, an issue that has strongly been linked to the three red lights of death failure, would also be reduced, while more space would be freed up inside the console itself. The report speculates that this new space could be used to house the current brick of a power supply that comes with 360s.

black_wing79 via next-gen.biz »