If we'd listen to online rumors, we'd believe that AMD's latest APU (Accelerated Processing Unit) is going to power Microsoft's Xbox 360 successor.
According to the rumors, Microsoft has already settled on the AMD's APU based on the Trinity architecture to power its next console. The first Trinity -based AMD APU is expected to launch in 2012 and it is claimed by AMD that it is up to 50% more powerful than its current Liano-based APUs. Both Liano and Trinity chips support DirectX 11.
It is worth noting that a high-ranking AMD employee from the company's Graphics Products Group talked about Microsoft's next console and claimed that it will be to provide the level of graphical detail seen in James Cameron's movie Avatar.
Of course Microsoft didn't even acknowledge that that they are working on a new console, but it is likely that they would reveal it during the 2012 E3.