From slashdot:
EE Times reports further details on Microsoft's use of IBM chips in its next generation Xbox game and consumer electronics devices, dealing a blow to Intel and providing a much needed boost for IBM's lossmaking chip business." An analyst claims that "IBM is likely to modify its most advanced G5 PowerPC silicon, which is being used in Apple Computer's fastest Macintosh desktops, for the embedded market, reducing the cache and cutting power consumption", and further comments: "This is likely to heat things up at Intel, but it is competition that is healthy for the industry. It's ironic that IBM, with its roots in the computer industry, doesn't supply the processors for the main portion of the personal computer industry. Intel does."
