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Microsoft to design its own chip for Xbox


Monday, November 10, 2003 Microsoft Corp. is planning to license intellectual property from suppliers and actively participate in the design of chips that would be used in the Xbox, according to a news report.

The report said the approach would allow Microsoft to better optimize its game console, address hacking problems and potentially sell chips or derivatives for other applications.

Microsoft would become a fabless chip company with itself as the primary customer, the report said. Microsoft is licensing graphics technology from ATI Technologies, processor technology from IBM Corp. and chip set technology from Silicon Integrated Systems (SIS). Microsoft will then work with its partners to create a set of custom chips, according to the report.

By: DocMemory
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