Microsoft

Microsoft has signed on Advaned Micro Devices to deliver the processing power in its upcoming Xbox console, a new report claims.

The next Xbox, which could be unveiled next month, is a system-on-a-chip (SoC) boasting both AMD's Jaguar CPU and a graphics chip more powerful than the one available in the current Microsoft console, Bloomberg reported yesterday, citing someone who claims to have knowledge of Microsoft's plans.

According to Bloomberg's source, the chip is based on x86 architecture, meaning it will make it much easier for game developers to port their titles from PCs or mobile devices. The cost of developing titles should also come down a bit, since the Xbox will be based on the same architecture that developers are already comfortable using.

The Xbox 360 uses an IBM PowerPC processor and a Xenos graphics processor (originally from ATI, but now from AMD following its acquisition of ATI).

For AMD, getting the next Xbox on board would be awfully good news. Earlier this year, Sony announced the PlayStation 4 -- without actually showing off the hardware -- and said it would feature an AMD processor. That device is expected to deliver far superior visuals to those offered currently.

That AMD would be partnering with Microsoft on the next Xbox is certainly no surprise. For years now, the companies have been rumored to be working together on a new console featuring the chipmaker's processors.

In fact, AMD director of ISV relationship management, Neal Robison, said all the way back in 2011 that the next Xbox's console will have the power to assign "individual personalities" to pedestrians on a crowded, in-game city street, thus making them act more human-like.

Robison also promised that the next iteration of Microsoft's console line would deliver graphics that would come "pretty darn close" to those found in the 2009 megahit "Avatar."