Microsoft may be nearing launch of an Xbox 360 Slim

Microsoft has long been rumored to be working on a combination microprocessor-graphics chip for the Xbox 360 as part of a move to create a slimmer game console.

Now some evidence has surfaced that the code-named Valhalla chip is done and a new model of the Xbox 360 with a redesigned motherboard (main circuit board) is near. A Chinese web site published photos of a motherboard with what appears to be a central processing unit (CPU)-graphics processing unit (GPU) chip.

Such a chip would get rid of a major cost in the system and allow Microsoft to make the console smaller. The company sorely needs that, since Sony launched a redesigned PlayStation 3 Slim in August to great success. But the combo chip isn’t an easy thing to pull off, in part because IBM makes the CPU and Advanced Micro Devices makes the GPU.

Microsoft declined to comment. The company never alerts users to these kinds of upcoming changes, unless there is a cosmetic difference. Most of the time, the box stays the same and maybe the price is changed. The company originally planned to introduce a motherboard cost reduction every year and major change in chip designs every two years. That generally matches advances in semiconductor manufacturing technology. But this cycle has turned out to be very different than past console cycles.

Also, just because there are pictures surfacing now doesn’t mean that a launch of a new, slimmed down console is imminent. It often takes months of testing before new devices are introduced into the market after a big design change.

[photo: Engadget]

Dean Takahashi

Dean Takahashi is editorial director for GamesBeat at VentureBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.