Rumor: Next Xbox console to have ARM-based processors?

What will the next game console from Microsoft be like? There are lots of rumors floating about the Internet on this subject, already even though Microsoft might not launch the hardware until 2013 or 2014. Now a new rumor from MS nerd claims to have some interesting inside information about the next Microsoft game console.

MS_Nerd's site claims to get inside info about Microsoft's various projects: the blog previously issued correct details about the company's now canceled Courier tablet project well before anyone else. So while we are taking this info with a big grain of salt we are also considering the source of the info.

The blog states that Microsoft and two unnamed companies are designing the processor for the next console which it claims is using a design from ARM. If true that would certainly be a big sea change compared to the Xbox 360's Power PC-based chip. The blog states that the processor will have a main processor core along with "multiple dedicated assistive cores for graphics, AI, physics, sound, networking, encryption and sensors."

Furthermore, the blog states that the next game console from Microsoft will have an modified OS core based on Windows 9 (Windows 8 hasn't even been launched yet). Finally the next Xbox is supposed to be cheaper and lighter than the Xbox 360.

So is any of this stuff really true or is "MS nerd" making us bark up the wrong side of the tree this week? Having a console that is smaller and cheaper that the current Xbox 360 would seem like a no-brainer to Microsoft, especially if they ever want to crack into the Japanese market which has failed to generate much in Xbox 360 sales.

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