IBM to build chips for XBox 2

Straight from Microsoft comes the news that IBM has been awarded the contract to build the chips for the XBox 2. This, of course, has gotten all sorts of rumour mills flowing.

What if XBox 2 gets built on IBM's "state-of-the-art processors" (which at this time would be the PowerPC 970 a.k.a. G5)? Read on for some rumours that are wilder than Apple on Intel…

Update: no longer a rumour - see this Wired story

Update 2: And they're going to support backwards-compatibility through emulation from their Connectix purchase Of course, IBM is already involved with building the next Nintendo and Sony platforms as well. But still, I can only imagine the PR storm if MS is really going to go with a PPC-powered platform. Nevermind the fact that it would be completely incompatible with the current platform. Hmmm…last rumour speculation: Microsoft is so afraid of G5 performance that they're hedging their bets by investing in Virtual PC technology.

More snippets of info from ArsTechnica.