IBM, not Intel, to make next XBox chip

Microsoft on Monday said it would use IBM chips in its next generation Xbox game and consumer electronics devices, dealing a blow to Intel and providing a much needed boost for IBM’s lossmaking chip business.

What’s interesting is that IBM will provide the new Xbox with PowerPC microprocessor technology, the same used with Apple’s Macintosh computers. It would seem unusual that Microsoft would do so for their gaming console. Granted, the processor itself is coming from IBM and not Apple (Apple gets their G5 from IBM) but it would lead one to see that Apple computers may be running on superior hardware as Microsoft “plan[s] to deliver unprecedented and unparalleled entertainment experiences to consumers while creating new engines of growth for the technology and entertainment industries” with their Xbox system. Could this position of XBox hardware be, in fact, a blow to Windows machines and the hardware on which they run?

read more at financial times (ft.com):
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1066565587439