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Microsoft Readying New Xbox 360 “Falcon”

Dean Takahashi reports that Microsoft is almost ready to start selling the next generation of the Xbox 360, code-named “Falcon”. Dean says that “Falcon” uses a 65-nanometer manufacturing process for both the CPU and the ATI graphics chip, reducing manufacturing costs and overheating for the console. Once the revision makes its way into the manufacturing pipeline, something Dean says will be completed this summer, Microsoft will have multiple options for the Xbox 360.

They can:

  • Sell the Xbox 360 at its current price, and make a higher profit on every sale due to lower costs, as well as touting the lower temperature of the system.
  • Lower the price of the 360 to improve sales, cutting off Sony’s still-expensive PS3 and better competing with Nintendo’s Wii.
  • Improve the design of the 360, making it smaller.
  • Add more features inside the 360 (like an HD-DVD drive), taking advantage of the fact that things are a lot more stable inside.

The point is, these new Falcon-based 360s represent a major change for the 360, getting it to be cheaper to make and finally ending the heat problem, and makes Microsoft far more competitive. The new chips cost half as much, which puts Microsoft in a great position against Sony.

July 9th, 2007 Posted by Nathan Weinberg | Xbox, Xbox 360 | 5 comments


  1. well finally something that makes me happy i was waiting for a long time for this, ill buy that new 360 event if they dont cut the price, but if they do cut the price and plus the 65nm inside that will be killer but does anybody knows when the first 65nm 360is coming out

    Comment by jonathan | 7/20/2007

  2. I want you to reduce the heat/noise of the console.
    Make it good and something really nice.
    On the next console, then it now will be relased, so but in a new HD-drive. At that time you must know what that standard is, BlueRay or HD-DVD.

    I donĀ“t know then it will come out but time is money so to Microsoft I just say: Start up! On the double! What are you waiting for?

    Comment by Micke | 7/30/2007

  3. do you thing that if i go ahead and buy one now aT THE PRICE drop and it breaks i will get the new falcon parts put in when its refurbished… does anyone know when the falcon is coming out

    Comment by jacob | 8/2/2007

  4. i was also wondering where you can get hd dvds and also is it was going to be blueray or hd dvd

    Comment by jacob | 8/2/2007

  5. Jacob: Most warranties clearly have a condition that if a part is not available, it will be replaced with the newer version of that part. As soon as Microsoft runs out of the older 360, all warranty repairs will likely be filled with Falcon systems. If you have a warranty from a place like Best Buy, you’ll be able to grab one off the shelf and replace yours with it if it breaks.

    Comment by Nathan Weinberg | 8/5/2007

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