Digital Home Thoughts: IBM Describes Xb0x 360 Chip And Makes A Surprise Announcement

"IBM is announcing today that it has brought aboard Chartered Semiconductor as a second source to make the PowerPC microprocessors for the Xbox 360. Microsoft asked IBM to find a second source as part of its agreement to use IBM's designs in its new console instead of Intel's. Those who are old enough to understand the importance of second sourcing should recall the original IBM PC. Back in 1981, IBM asked Intel and Microsoft to provide the heart of its new computer. Microsoft was the sole developer of the operating system. We all know the consequence of that decision. But on the chip side, IBM asked Intel to find a second source for its microprocessor. Intel turned to Advanced Micro Devices, and the artifacts of those big decisions are still around today. It's why Intel has a competitor in the x86 microprocessor business. The deal with Chartered is reminiscent of the concerns that IBM had in the old days, but now Microsoft is the one that wants a second source. There's some rich irony in this new IBM-Microsoft alliance."



History repeats itself. It will be very interesting to see what Chartered Semiconductor learns from its' partnership with IBM, and how it takes that experience to other customers. It has the potential to be a very beneficial relationship for Chartered. On another note, as the details of the Xbox 360 CPU come out, it stands to be one of the most powerful processors ever produced. In terms of raw processing power, it surpasses even the fastest Pentium 4 processor on the market today. This should ensure an incredibly smooth and transparent user experience, even when playing back high-definition video files.