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  Microsoft Adds New Video Chip to Xbox
Time: 05:10 EST/10:10 GMT | News Source: Yahoo News | Posted By: Alex Harris

A partner of software giant Microsoft Corp. on Wednesday unveiled a new video chip for the Xbox video game console in a move aimed at reducing the machine's cost. Campbell, California-based Focus Enhancements Inc. said it has developed a new chip for the console, which made its debut in the United States last November, that processes video for television. "The chip going into the Xbox is designed to give Microsoft a competitive advantage," Tom Hamilton, the executive vice president of Focus, told Reuters.

Xbox's rivals in the lucrative video game player market are Sony Corp.'s Playstation 2 and Nintendo Co Ltd.'s GameCube. Hamilton said Focus's chip is "several dollars cheaper" than what Microsoft is using now to convert video from the console's graphics chip to a format suitable for TV sets. He also said the chip is planned for use on a new motherboard for the console, rather than the one Microsoft has been using. "It's basically a cost-reduced board," Hamilton said.

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