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Microsoft amalgamates Xbox 360 organs

Chip fusion

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Microsoft has revealed an all-new system-on-chip (SoC) processor for Xbox 360 Slim models, which could pave the way for cheaper and more power-efficient consoles.

The new SoC combines the CPU, GPU memory and I/O logic into one chip, dramatically reducing the manufacturing costs. While this provides greater efficiency with less heat output, the console's motherboard and power supply can come down in size too, IBTimes reports.

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The company insists there will be no compatibility issues with the new consoles.

With Microsoft's next-gen console expected around 2015, the company certainly needs a fresh angle to traffic more of its current tech. The new SoC could pave the way for a price drop.

There's no word on when the new Slim consoles will launch, but we'll keep you posted. ®

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