We all knew it was only a matter of time, and now it looks as if that time has come: Microsoft is implementing codename Falcon in order to reduce overheating in 360s and also greatly reduce the price of manafacturing costs which will translate to a long-overdue price drop across all SKU's. Not a moment too soon either, as Sony has already unwillingly announced the PSDoorstop is getting it's own price rolled back.

Now if only there was a way Microsoft could announce this price cut in a grand fashion, perhaps like a show or some kind of big press event, an expo perhaps. If only...

Hit the jump for all the sexy details and sexy impressions.*

*Note: May not be all that sexy.

Via The Mercury News: 

Falcon is the name for the latest internal electronics in the Xbox 360. It will have an IBM microprocessor and an AMD/ATI graphics chip that are manufactured in a 65-nanometer production process. These are cost-reduced chips that do the same thing as their 90-nanometer predecessors, but they’re smaller.

With smaller chips, Microsoft gets a bunch of benefits. They won’t generate as much heat. So the risks of overheating — one of the main reasons behind Microsoft’s billion-dollar write-off for repairs and extended warranties — are much lower. The chips may also cost half of what it took to make them before because they use less material and fewer manufacturing steps to produce.

Everyone knows that console makers cut the prices and costs on their consoles over time. But you may not be aware that the primary chips – microprocessor, graphics, and the Ana video processing chip – are the bulk of the cost of the machine. Microsoft started making the Xbox 360s in August, 2005, with a 90-nanometer process. It is overdue to switch to the newest technology, 65 nanometers, but that day has finally come. It may be some time — a year, maybe two — before it moves on the a 45-nanometer process.

 Joe Burling had nothing to do with this tip ... ... ... ... ... ... ... NOT!