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XBox 2 'designed with AMD processor'

Microsoft engineers are busy designing the second version of Xbox around an AMD CPU, according to Fechtor Detwiler, the Boston-based investment bank.

Their channel checkers picked up this tidbit, and say that Intel won't be able to snatch and grab the contract as easily as it did first time around.

"One of the primary reasons for the selection we understand," the firm says in a research note, "was the close relationship of Microsoft with Nvidia.

We were told that Intel's strategy of combining graphics capability with processor function on the same device left Microsoft with fears that they would lose the ability to provide enhanced video features offered Nvidia or potentially others."

News source: The Reg

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