Next Microsoft Xbox Console to Use AMD GPU?

Tag as "really iffy rumor," but tech site Fudzilla is claiming AMD's GPU technology will once more do the heavy lifting under the hood of Microsoft's next video games console.

In a vague, perfunctory post, Fudzilla writes "We've learned from industry sources that AMD / ATI has already won the GPU deal for the next generation XboX [sic] console." Of course no sources are provided, much less offered up as anonymous, so anyone's conspiracy theories about said claim are as good--or bad--as mine.

Rationalizing the "decision," Fudzilla writes "It looks like Microsoft was happy with the first Xeons [sic - should be Xenos] GPU and it wants to continue using the same, especially since the new ATI GUI should keep the compatibility with legacy games."

Who's suggesting what here? Does Fudzilla mean "industry sources" are saying that? Or is this the wildly speculative leap it sounds like? Does Microsoft care about legacy game compatibility? Does anyone anymore?

Biz site Develop picked up the Fudzilla story and managed to confuse things further in its closing paragraph. Fudzilla alleges the Xbox 360's successor was supposed to happen next year, but that Microsoft pushed back to 2012. Baseless presumptiveness notwithstanding, Develop misreads this as a nod to what Steve Ballmer said in June when he suggested a new version of the Xbox 360 would arrive in 2010. Except Ballmer was talking about Natal, Microsoft's motion control interface due next spring, not the company's next (as in successor) video games console.

CVG passes along Fudzilla's error, calling the AMD part an "ATI-built Xeons GPU." Last I checked, Intel's server-class x86 microprocessor family had nothing to do with either Microsoft or AMD.

Time to slow down a bit here guys?

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