MacRumors.com

Team Xbox claims that IBM will be producing 65-nm chips for the upcoming "Xbox 2" and start delivering commercial parts in the next 12-18 months.

In November, Microsoft and IBM announced that the future Xbox would utilize IBM processors. Few details had been available.

IBM produces the PowerPC 970 for Apple's PowerMac G5 which were introduced at a 130nm process. Recently introduced Xserve G5s now utilize a 90nm process. Reducing the process size should allow future chips to reach higher speeds and potentially less heat production.