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  Microsoft to further cut production costs for the Xbox
Time: 12:01 EST/17:01 GMT | News Source: E-Mail | Posted By: Byron Hinson

Microsoft is partnering with California-based Focus Enhancements to provide a new chip for the console that processes video for television. According to Tom Hamilton, the executive vice president of Focus, "The chip going into the Xbox is designed to give Microsoft a competitive advantage," and will be "several dollars cheaper" than what Microsoft is currently using for the Xbox console. The chip will not be used in the existing motherboards, but instead is destined to be used in the new and cheaper motherboard for the Xbox, a process initiated last year before the Xbox hit the market, according to Tom Hamilton. "It's basically a cost-reduced board," Hamilton said according to Reuters.

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