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breadie said:
32nm second half 2009 .. so no way xbox360 going to use 32nm.

Presumably in 2H 2009 the 360 will be selling a bit better than it did this year making it one of the most attractive places to apply your top fabrication process.  IBM does fabricate a lot of chips, but ~10 million/year is nothing to sneeze at.

However, moving to a 32nm chip isn't going to drop the cost of the 360 by $50 or anything like that.  It's a smaller decrease, and if you want to move to it early it is offset by the cost of rennovating a fab facility.