Microsoft is to update its Xbox consoles with a new, cheaper TV output system.

Focus Enhancements' FS454 chip is now shipping to Microsoft for incorporation into future consoles.

The chip has taken a while to get here. Microsoft commissioned the part in May 2001, and the part was finally finished according to the specifications laid down by the Beast of Redmond in July 2002. Now, just over a year later, production chips are on their way to Microsoft.

According to Focus, the FS454 supports "virtually all" of the world's standard- and high-definition formats. The company claims it consumes less power than rival parts and - crucially - costs less.

That should help Microsoft reduce the amount of money it loses on each machine.

The FS454 also provides Macrovision 7.1 DVD anti-copy protection technology in the encoder for all TV outputs. ®