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Microsoft/IBM Processor Deal
November 5, 2003

Microsoft and IBM have announced an agreement between the two companies concerning IBM processing chips. This agreement grants Microsoft the license to use IBM processors in Xbox products and future products and services.

"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." 

"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."

Since Microsoft would risk losing backwards-compatibility with existing Xbox titles if it uses an IBM CPU in the Xbox 2, it's doubtful that this deal means Microsoft is abandoning Intel's CPU.  Most likely, IBM technology will be used in other critical areas.

Reported By: Nick Arvites

 


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