IBM wins the CPU contract for the Microsoft's X-BOX 2.

[downix]

This is *not* an announcement that IBM *is* providing the CPU silicon.  This is a cross-licensing agreement announcement only.

Don't count your eggs before they are hatched.  These same licenses, I would note, are utilized by AMD in their x86-64 chips, and could note a shift from Intel to AMD just as readily as a shift from Intel to IBM.  Knowing Microsoft, they are playing these three off of each other to drive the price down.

[downix]

According to IBM they are providing "Processor Technology", meaning this thing could have a G5.

Yes, it could.  It could also mean an x86, or a G3.  IBM has made x86 cores, even a x86-compatible PowerPC core before.  (the 615)  It could also mean a cut-down G5 combined with Microsoft's recent purchase of VirtualPC.  Right now this all is conjecture.

Tomorrow Microsoft is to have an announcement with more details on this deal, I highly suggest we all wait and see what comes out of there.

[downix]

XBOx is loud.

Now, my Jaguar, that's quiet.