HQ NETWORKXbox One | Xbox | InstallerDeluxe.Com 1,961 HQ Network UsersHQ Network: 1,961 | Members OnlineGuests: 1280 |Guests OnlineMembers: 0

  Active Topics  | Achievements  | Cheats  | Downloads  | Feedback  | Forums  | Games  | Hardware  | My Profile  | News  | Reviews  | Tutorials  | Leaderboards  | Videos

Microsoft’s next move? Code-name Falcon

Catch up on everything Xbox including the latest Gaming News, Release Dates, DLC, Xbox Live and Modding..

Browse All News |  Write for Us |  Most Popular |  Browsing: 91 SEARCH XBOX NEWS:      
Newegg

Microsoft’s next move? Code-name Falcon

Microsoft’s next move? Code-name Falcon
Published by endless on Monday, July 09, 2007

Mercury News is reporting a price cut move by Microsoft. Its code name is Falcon, which is a move to 65 nanometer chipsets. Cpu, and Gpu. With perhaps beefed up heatsinks, smaller motherboard, and possibly sticking the power brick in the console.

Its also mentioned that perhaps Microsoft has plans down the road for 45 nanometer chipsets.

Lastly a Wedbush Morgan analyst expects the recently released Xbox 360 Elite to go from USD 479 to USD 399, the Premium model to see a drop from USD 399 to USD 349 and the Core system to be reduced from USD 299 to USD 249.

News-Source: http://blogs.mercurynews.com
http://www.gamesindustry.biz


Click read more to view full articles.

Here’s a trade secret that Microsoft is unlikely to publicly acknowledge.

Sony’s cutting the price on the PlayStation 3. How will Microsoft react? We’ll find out soon. But a key part of the strategy is going to be a project code-named Falcon.

Falcon is the name for the latest internal electronics in the Xbox 360. It will have an IBM microprocessor and an AMD/ATI graphics chip that are manufactured in a 65-nanometer production process. These are cost-reduced chips that do the same thing as their 90-nanometer predecessors, but they’re smaller.

With smaller chips, Microsoft gets a bunch of benefits. They won’t generate as much heat. So the risks of overheating — one of the main reasons behind Microsoft’s billion-dollar write-off for repairs and extended warranties — are much lower. The chips may also cost half of what it took to make them before because they use less material and fewer manufacturing steps to produce.

Everyone knows that console makers cut the prices and costs on their consoles over time. But you may not be aware that the primary chips – microprocessor, graphics, and the Ana video processing chip – are the bulk of the cost of the machine. Microsoft started making the Xbox 360s in August, 2005, with a 90-nanometer process. It is overdue to switch to the newest technology, 65 nanometers, but that day has finally come. It may be some time — a year, maybe two — before it moves on the a 45-nanometer process.

But it’s worth it. I recall that Ken Kutaragi said that by moving along the semiconductor manufacturing cost curve with the PlayStation 2, Sony was able to reduce the size — and therefore cost — of the PlayStation 2’s original chips to just 13 percent of the original over the life cycle of the PS 2.

If you cut the costs on the chips, you can cut the overall cost of the system. You get ancillary benefits such as using a smaller motherboard, more air flow inside the console, and the ability to take the big giant power supply in the Xbox 360’s power brick and put it inside the console.

Microsoft is in the process of qualifying the new Falcon chips and motherboard this summer. I expect it will launch Xbox 360s with the new Falcon innards this fall. That is why the company has been able to say that it has solved its manufacturing quality problems. Microsoft is likely to spend a little more money on heat sinks to make sure that the overheating problem doesn’t resurface with Falcon.

The good thing about the smaller chips is that they will likely be easier to make in mass quantities and they shouldn’t fail as often. Quality should automatically go up. That’s what folks said about the 90-nanometer generation. But the 65-nanometer production process is a known quantity at this point at places such as IBM for sure and possibly at other suppliers such as Taiwan Semiconductor Manufacturing Co. So rather than fix the problems with the 90-nanometer machine, Microsoft has the easier problem now of getting a 65-nanometer machine to work right. I suspect that is why Robbie Bach, president of the Entertainment & Devices group, said on Thursday on a conference call with analysts that the company has “its hands around it at the engineering level.”

But once this machine is in the field, Microsoft will have a few options. It can take the power brick and put it inside the same chassis. It can also make a smaller version of the core, but this involves considerable redesign and retooling resources. And it could also beef up the console and make room for more costly things — as it did with the Elite.

It’s anybody’s guess as to what Microsoft will do with the Falcon as its base platform going forward. But Sony had better watch out. Microsoft is moving ahead of Sony on the cost-reduction curve. It would be risky for Sony to get into a price war with Microsoft.

Now it’s easier to see why Microsoft still expects to be profitable in fiscal 2008 with the Xbox 360 business. In this fiscal year, Microsoft will introduce a major cost reduction with the Falcon platform. It will launch Halo 3. And it has already written off in fiscal 2007 the costs of repairing consoles for the next few years.

Falcon is a fundamental part of the strategy that Microsoft is using to try to beat Sony. Is it going to be good enough to beat Nintendo on costs? Very doubtful. Nintendo can play the cost-reduction game just as Microsoft can. Falcon certainly means that Microsoft can afford to cut the price of the Xbox 360 going forward. Whether it does so depends on how aggressive it wants to be at winning the lead market share in the business. But everyone knows that if you cut your hardware price too much, you lose money. After all, Microsoft lost an estimated $3.7 billion on the original Xbox.

When I asked David Hufford, a Microsoft spokesman, about Falcon on Friday, he said I was telling him something new. When I asked Peter Moore, head of games at Microsoft, about Falcon on Thursday, he said, “We have a bunch of different projects that cost reduce and improve quality as you find issues, as does our competition. Once you get millions in the field, you learn about the box under all kinds of different circumstances, you can adjust and tweak what you do accordingly.”

$80 off Elite, $50 off Premium models to maintain pricing advantage

Following Sony's USD 100 price cut announcement, leading industry analyst Michael Pachter has gone on record predicting that Microsoft will quickly follow its rivals' lead and slash prices on all Xbox 360 models.

The Wedbush Morgan analyst expects the recently released Xbox 360 Elite to go from USD 479 to USD 399, the Premium model to see a drop from USD 399 to USD 349 and the Core system to be reduced from USD 299 to USD 249.

"We expect Microsoft to follow with a price cut of its own," said Pachter.
"Last week, Microsoft announced a slight Xbox 360 shipment shortfall and we do not believe that the company is prepared to allow Sony to erode its pricing advantage.

"We think that the console manufacturers will continue to cut price as their production costs come down, and expect sales to ramp significantly this holiday season," he added.
The company does not expect Nintendo to reduce the price of the Wii or DS, "as sales for both are still very strong and are anticipated

( Subscribe via )

Rate this Article

Average Score: 0 | Votes: 0



  

 Printer Friendly Printer Friendly  Send to a Friend Send to a Friend
Pre-order Microsoft Flight Simulator

Latest Xbox 360 News

Xbox 360 NewsDovetail Games announces Bassmaster Fishing 2022 for Xbox, PlayStation and PC
Dovetail Games announced today that Bassmaster Fishing 2022, the biggest bass fishing video game ever made, is currently in development for the Xbox One, Xbox Series X|S, PlayStation 4, PlayStation 5,..

'Wardens Rising' is coming to Xbox Series X|S, ..

Hitchhiker A Mystery Game Hits Console and PC o..

Super Meat Boy Forever is Coming to Xbox One an..

Rain On Your Parade available to preorder on Xb..

Xbox 360 News | Submit News

Xbox 360 News Archive


   Monday, April 12
 Last Oasis Game Preview Flies Onto The Xbox G

   Friday, April 09
 Xbox360Team17 Showcases A Smorgabord Of Upcoming Gam

   Thursday, April 08
 Xbox360Digital Pre-order's For MotoGP 21 Are LIVE On

   Wednesday, April 07
 Xbox360BIOMUTANT Available To Pre-order Digitally On

   Tuesday, April 06
 Xbox360Hot Wheels Unleashed launches September 30th
 Overcooked! All You Can Eat is available now

   Monday, April 05
 Xbox360Ironic outer space survival adventure game 'B
 RetroMania Wrestling Hits Xbox One, Xbox Seri

   Friday, April 02
 Xbox360“Dark Alliance” Launch Date Set for June 22nd
 Life Is Strange: True Colors is now available

   Thursday, April 01
 Xbox360House Flipper's 'Garden Bundle' DLC is availa
 Subnautica: Below Zero launches for consoles

   Wednesday, March 31
 Xbox360The NINJA GAIDEN Master Collection Now Availa

   Tuesday, March 30
 Xbox360Angry Video Game Nerd I & II Deluxe Is Now Av
 Puzzle platformer 'Escape from Life Inc' hits

   Monday, March 29
 Xbox360EA Play is Now Available on Xbox Game Pass Me
 The Stellaris 'Nemesis' expansion launches Ap

   Friday, March 26
 Xbox360Outriders Heads to Xbox Game Pass on April 1s
 Tandem: A Tale of Shadows coming to Xbox, Pla
 Beach Buggy Racing 2: Island Adventure Races
 “In Rays Of The Light” is available now for X

   Thursday, March 25
 Xbox360Ruvato: Original Complex releases March 26th
 Curve Digital announces 'Just Die Already' fo
 Best Sports Games for Xbox One in 2021
 Survival horror game 'Heaven Dust' Is Out Now

   Wednesday, March 24
 Xbox360Watch Dogs Legion's “Online Mode” Is Availabl
 The 2K Ball N’ Brawl Bundle Out Now on the Mi

   Tuesday, March 23
 Xbox360PACER Is Available Now On Xbox One and Xbox S
 Orbital Racer Is Available Now On Xbox One &

   Monday, March 22
 Xbox360Open-world action RPG “Under The Jolly Roger”

See All Xbox 360 News | Xbox 360 News Archive

HQ Network Affiliates

Xbox One Games
Xbox One X Games
MrModChips.Co.Uk
Xbox360RepairService
GamerBolt.Com
Play-Asia.Com
GameSpot.Com
TeamXbox.Com
Xbox360.Ign.Com
Xbox360.Com
360hacks
Video Game Consoles
Llamma.Com
Xbox 360 Cheats
Xbox Cheats
Game Bullets
Xbox One Forums
GetSweatyGaming.Com
Xbox 360 Cheats
Xbox 360 Achievements
ConsoleWizard.Co.Uk
GamerSuggestions.Com
Xbox 360 Cheats
360FriendSpot.Com
Video Codecs
GameWinners.Com
XboxExclusive.Com
TheXboxExpert.Com
Get 360 Achievements
OrigenXbox360.Com
GameGrep.Com
City14.Com
HD wallpapers
View All HQ Affiliates
Newegg
Pre-order Microsoft Flight Simulator 2020