Singapore's Chartered Semiconductor has revealed plans, according to Vnunet, to begin manufacturing the XBox 360 CPU using the 65 nm process from Q1 2007.
Microsoft will definitely not call this change an upgrade, in order not to alarm current XBox 360 owners, but it is widely believed that the change in the process will benefit the stability of the X360. The main reason this change will take place is financial as Microsoft will be cutting its cost per console by adopting the new technology.
During the first few weeks following its launch, the XBox 360 gained notoriety for hardware failures while recently Microsoft announced that a specific batch of consoles had proved ...prone to hardware issues. It is not very clear if the lower power consumption and subsequent drop in operating temperature which a 65 nm chip will introduce will be enough to make the difference but any drop in temperature is welcome in any electronic device.