News on the wire over at Digitimes has said that the Xbox 360’s Xenos graphics chip will be getting a bit smaller come fall. According to equipment manufacturers in China, the new version of the chip has already been taped out and will begin production soon.

The original Xenos chip, designed by ATI, was manufactured using TSMC’s 90nm fab process. The new tape-out will bring the chip down to 65nm and is set to begin full production this month. According to reports, sales of the new chip will amount to 5% of TSMC’s profits for mid-year, so apparently sales of the 360 aren’t down all that much after all.

The die shrink will bring all the usual benefits to the 360, including lower electricity usage and thus a drop in thermal output.

Source: Bit-tech.net