Microsoft licensed microchip technology from IBM

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http://www.forbes.com/technology/newswire/2003/11/03/rtr1132363.html

NEW YORK, Nov 3 (Reuters) - Microsoft Corp. (nasdaq: MSFT - news - people) on Monday said it had licensed microchip technology from International Business Machines Corp. (nyse: MSFT - news - people) for use in future Xbox products.

In a joint statement, the two technology bellwethers said the move would enable Microsoft to deliver better entertainment experiences. The Xbox is Microsoft's video gaming console.
 
http://biz.yahoo.com/prnews/031103/sfm059_1.html

Microsoft and IBM Announce Technology Agreement
Monday November 3, 9:00 am ET
IBM Technology to Power Future Xbox Products and Services


REDMOND, Wash. and EAST FISHKILL, N.Y., Nov. 3 /PRNewswire-FirstCall/
-- Microsoft Corp. (Nasdaq: MSFT - News) today announced that it has entered into a
semiconductor technology agreement with IBM Corp. Under the agreement,
Microsoft has licensed leading-edge semiconductor processor technology from
IBM for use in future Xbox(R) products and services to be announced at a later
date.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
"Microsoft is already developing the software and services that will drive the Digital Decade," said Robbie Bach, senior vice president of the Home & Entertainment Division at Microsoft. "By combining our vision, software experience and R&D resources with IBM's computer and semiconductor technologies, we plan to deliver unprecedented and unparalleled entertainment experiences to consumers while creating new engines of growth for the technology and entertainment industries."

According to Bernie Meyerson, IBM Fellow and chief technologist for IBM's Technology Group, the new Xbox technologies will be based on the latest in IBM's family of state-of-the-art processors.

"IBM's advanced chip technologies are in demand across a wide range of industries and applications," Meyerson said. "We're excited to be working on a project of this magnitude and that Microsoft has chosen IBM to provide technologies that will power future consumer devices and expand the boundaries of what's possible in entertainment."
 
The king of copy. ;)

Fredi

PS: I don't mean copy cell, I mean copy the idea to work with IBM for a console CPU.
 
This is bad news for Intel.

1) The manufacturation process Roadmap killed Intel.

2) For now, PowerPC has a more advanced architecture than the actual Intel x86 architecture.

But the problem is that we aren´t going to be free of TCPA/Palladium.

Poor Apple. :cry:

Poor Linux community :cry:

Poor freedom on the computers :cry:

If that is true IBM is a traitor for me.
 
...

This agreement probably covers the XGPU2 fabrication only.

There has been a mass exodus of OEMs from TSMC because of TSMC's inability to fabricate high-clockspeed parts. The CPU itself will stay with X86.
 
the new Xbox technologies will be based on the latest in IBM's family of state-of-the-art processors

Family of processors sounds not like IBM will just fab the chip.

Fredi
 
Intel has never done foundry or 3d party R&D work, I dont think it's a particularely big loss for them. XBox processors had low margins anyway.

Worse for AMD, who could use it from a PR point of view.
 
From C-Net:

A long-term temporary worker says that the software giant fired him after he posted a photograph on his Web site of Macintosh G5 computers being delivered to the company's Redmond, Wash., campus.

Wanna bet Xbox2 will use a G5? ;)
 
pcostabel said:
From C-Net:

A long-term temporary worker says that the software giant fired him after he posted a photograph on his Web site of Macintosh G5 computers being delivered to the company's Redmond, Wash., campus.

Wanna bet Xbox2 will use a G5? ;)

Just waiting for the day that fanboys call the Xbox 2 a mac. :rolleyes:

Is there any information surrounding the G5? Any comparisons between chipsets?
 
I so doubt this will have much related to a G5. Maybe a relationship to the PPC on a instruction level. Why would Microsoft go to the hassle of switching from x86 to PPC unless there was some signifigant advantage in either cost or performance? IBM isn't going to be much cheaper than Intel or AMD. IBM isn't going to have a strong performance lead at the low price point for a console based PPC CPU.

For a console to have a CPU with a big leap in cost/performance ratio a radical new architecture is needed. Also don't forget about thermal problems with current CPU designs.

IBM already started to fab a revolutionary beast with the Berkeley IRAM design. With a Vector IRAM design, Microsoft would get a very high performance part, without serious thermal issues, and at a reasonable cost.


According to this page, IBM sent Berkeley completed wafers in June 2003.

http://iram.cs.berkeley.edu/chip.html


An article on the IRAM concept.

http://iram.cs.berkeley.edu/papers/IRAM.computer.pdf
 
Game on! Technology Group wins Xbox chip
November 3, 2003

Microsoft has selected IBM over Intel for the microprocessor technology that will power the next generation of the Xbox game console.

IBM earned this business because of its advanced chip technologies and deep development capabilities — required to create the chips that will provide the performance the future Xbox will need — which no one else in the industry can provide. The new Xbox systems will use chips based on IBM's family of state-of-the art processors.

"Competitive gamers are looking for gamemakers to provide greater functionality in game systems — higher resolution and more realistic graphics, better sound quality, faster system response, wireless features, enhanced online gaming capabilities, even two-way audio," said John E. Kelly, III, senior vice president and group executive. "And the gamemakers are looking to us for technology that can deliver that kind of gaming experience."

IBM also is working with Sony Computer Entertainment to develop the processor for the next version of its Playstation game system, Playstation3. With involvement in both Xbox and Playstation3, IBM is the future of gaming when it comes to chips.

Intel: Denied!

Winning this deal unseats Intel, which provides the processors for the current Xbox systems. This is the second time in recent months that IBM has handed Intel such a setback. Earlier this year, IBM won the business to provide the processors for Apple's new G5 personal computer over Intel.

"We kept Intel out of the Apple G5 and now we've kicked them out of Xbox," said Jeff VerHeul, vice president, Engineering and Technology Services, who leads the team that won the Xbox business. "Not bad, considering one Intel executive recently called us 'trivial.' I wonder how trivial he thinks we are now."

VerHeul said time-to-market, flexibility, and price also were critical factors in Microsoft's decision to choose IBM, because the gaming industry moves so quickly and is so competitive. IBM's ability to do everything from design through manufacturing makes it especially attractive to Microsoft.

The deal establishes IBM as the leading supplier of advanced chip technology to the gaming industry. IBM currently makes the processors for Nintendo's GameCube systems and recently began shipping in volume the GeForce FX advanced graphics processor for NVIDIA, the premier supplier of graphics chips for the gaming industry.

Two years ago, IBM began working with Sony to develop the processor for the next generation of its game system, PlayStation3. And now IBM has won the next-generation Xbox.

Growing market, growing opportunity

Game systems and games are among of the fastest growing segments of the consumer electronics market. Analysts estimate that the worldwide market for games and systems was roughly $20.7 billion last year and is expected to grow to as much as $30 billion by 2007.

This deal takes advantage of IBM's full scope of chip capabilities, with many of TG's major worldwide operations involved — design in Rochester, development in Austin and RTP, manufacturing and packaging in East Fishkill, and mask and test work in Burlington.

"That exemplifies the type of deals we want to sign — ones that use our full expertise and capabilities, and allow us to capture a substantial portion of growing gaming market revenue," said Dr. Kelly.
 
UPDATE 1-Microsoft turns to IBM for next Xbox chip
Mon November 3, 2003 11:46 AM ET

(Adds analyst)
NEW YORK, Nov 3 (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research) on Monday said it would turn to International Business Machines Corp. (IBM.N: Quote, Profile, Research) for microchip technology that it will use in the next version of its popular video game console, the Xbox.

Redmond, Washington-based Microsoft, the world's largest software company, used a chip from the No. 1 microprocessor maker, Intel Corp. (INTC.O: Quote, Profile, Research) , in the first version of its Xbox, which was released in 2000.

Richard Doherty, of Seaford, New York-based Envisioneering, a technology advisory company, said that IBM's PowerPC chips consume less power and run cooler than other chips. They compete with chips from Santa Clara, California-based Intel and Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) , a much smaller microprocessor maker in Sunnyvale, California.

"Intel had wrestled away the design win for Xbox from AMD at the last minute, and this will probably be quite a surprise to Santa Clara this morning that the next generation from their ally in system design, Microsoft, is going to their rival," Doherty said.

IBM, based in Armonk, New York, has licensed microprocessor technology to other companies and makes chips for Apple Computer Inc. (AAPL.O: Quote, Profile, Research) and for the Nintendo gaming console, among others, in its factories.

IBM opened a new semiconductor plant in East Fishkill, New York earlier this year and has been trying to lure new customers to the plant.

The next version of Xbox is expected to be announced in January by Microsoft founder and Chairman Bill Gates and to be on sale next fall ahead of the holidays, according to Doherty.

IBM is also working with Sony Corp. on a chip for its next version of the PlayStation gaming console. Earlier this year, Nvidia, which makes graphics chips often used in gaming, also turned to IBM to start making certain of its chips.
 
I thought the CPU in XBOX2 would have to be x86.... didn't they say they were definitely going to be backwards compatible?
 
Makes it doubly curious that they would decide to go with ATI. If it was just out of spite I dont know if they got all that good a deal, it's a sweet low risk deal for ATI (no huge profits either of course, but I doubt either ATI or NVIDIA would want to bet their profits on the success of XBox-2 ... Im sure ATI has already spend some time thinking about how to wash it's hands of it if worst came to worst). You would think it would have been cheaper for NVIDIA to develop for this process than it is for ATI.

IBM has got a lot of expertise in binary translation, maybe they will simply put in the necessary hooks to efficiently simulate x86.
 
Yeah it is worse for AMD, I was hoping that the xbox2 would have a low clocked athlon64 now that would have been cool, tons of games optimized for 64bit, and then on the desktop we would get them as well.
 
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