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UPDATE: Microsoft (MSFT) May Use AMD (AMD) Chips in Next-Gen Xbox

April 8, 2013 12:45 PM EDT
(Updated - April 8, 2013 12:52 PM EDT)

Microsoft (Nasdaq: MSFT) might use Advanced Micro Devices, Inc. (NYSE: AMD) processors in its next Xbox gaming console.

UPDATE - Microsoft might use AMD chips in an effort to cut the cost of manufacturing the new devices and induce developers to create more titles, Bloomberg said Monday afternoon.

The processors might be AMD's system-on-a-chip, which combines its "Jaguar" CPU with graphics chips.

Microsoft's move to x86 format means it would drop IBM (NYSE: IBM)-designed Power PC technology.

In addition, Bloomberg's source said the current Xbox 360 game discs wouldn't be compatible with the new system.

Shares of AMD are up 1.5 percent, while Microsoft and IBM and lower.


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