If there's anything Microsoft learned after having earned a negative amount from the original Xbox, it's that hardware matters a ton. The type of hardware put into a console has to be easily upgradeable, something that the original was not. Sure, the parts got cheaper over time, but no single Xbox console made any money for Microsoft.

That's changed for the Xbox 360. Last year, Microsoft announced that they turned the tide and officially were on the positive end of the total revenue for their hardware. Slight changes have been made since it's '05 release, mostly with the heatsinks, but now they've announced that 65nm CPU's is the standard to be.

Well, they didn't announce it. As usual, we get our news about Microsoft hardware from the actual hardware manufacturers, then wait for Microsoft to deny the whole ordeal. No matter, everyone can be happy about the CPU size change, since it will increase the CPU's productivity (smaller CPU means less space for information to travel, meaning it goes faster) and thus won't heat up so terribly.

TG Daily has also brought down news that some cooling fan companies have come forward and said that Microsoft is looking for a more efficient cooling system, which could hint at a possible second-generation 360. Something smaller, lighter, cheaper and sexier than the original, we hope.

TG Daily