Microsoft, in its efforts to cut costs and attract developers to create more titles, will use an AMD x86 processor in its yet-to-be announced Xbox 720 game console. AMD, based in Sunnyvale, California, also provides chips for Sony's PlayStation 4.
It should be noted that with a move to the x86 format, Microsoft will drop IBM's Power PC technology and the game discs made for the current Xbox 360 won't be compatible with its next console, Bloomberg reports. "The Xbox will use an AMD system-on-a-chip that combines powerful 'Jaguar' central processing units with graphics chips," the report says, quoting unnamed sources.
Although the report does not offer specific details about the hardware, the news is well in line with an earlier specs leak, which claimed that the system would use a 1.6GHz 8-core AMD CPU.
The deal will prove to be beneficial for both Microsoft and AMD. AMD will be able to decrease its dependence on the shrinking PC industry as it will seek to secure a larger slice of the $67 billion global video-game market, Microsoft will substantially benefit from the partnership as game developers will find it easier to create game titles for the next Xbox.
According to reports, Microsoft plans to reveal its next-generation Xbox console at the industry's E3 expo in June or at a separate event in May or June. Microsoft had originally planned to unveil Xbox 720 at an event in April. But a recent report from The Verge says that the company has pushed the launch date back to May.
This report was echoed by the well-known Microsoft insider Paul Thurrott, who said the big day will be May 21. He also speculated that the new console will be quite expensive and Microsoft will sell it for $300 with a subscription-based model and the standard model will be priced at around $500.