|The Xbox 360 chip is a 3-Core PowerPC CPU that is made exclusively for Microsoft. IBM is also making the chip for the upcoming Sony PlayStation 3, a different technology called a Cell chip ("Cell: A Chip That's Going Public" and "Unleashing the power of the Cell Broadband Engine"); and for the upcoming Nintendo Revolution.|
A lot of the industry commentary is on how Microsoft is selling the Xbox at a loss. However, they later discuss how the IBM chip set is key to the Xbox, and to the PlayStation 3 and Nintendo Revolution as well. And why is Microsoft willing to sell Xboxes at a loss? It's more than just marketshare; it's a desire to make the Xbox the digital entertainment console at the center of your livingroom; see "Microsoft's Xbox 360 does a lot more than just play games"
Do you want to know more?
- IBM delivers Power-based chip for Microsoft Xbox 360 worldwide launch (IBM)
- Xbox 360 unveiled (developerWorks)
- The iSuppli Xbox 360 Teardown Highlights IBM's Dominance in Next-Generation Consoles (Team Xbox) and IBM Dominates Game Console Market, iSuppli Says (Electronic News)
- IBM 3-Core PowerPC CPU Powers Next-Gen Microsoft Xbox (Electronic News)
- IBM Delivers Power-based Chip for Xbox 360 Launch (Team Xbox)
- Microsoft loses money on each Xbox; IBM chip key (Reuters)
- Inside IBM's Xbox Chip (Business Week)
- Microsoft's Red-Ink Game (Business Week)
Also, here's an article and whitepaper on the hardware chip set partnerships like this that IBM offers: "Understanding BPTS: Engineering & Technology Services - A new model for creating value in a commoditizing world"