Choice quotes from article:

[...]

"Today, word escaped from Asian component manufacturers that Microsoft have accelerated the planning for the redesigned Xbox 360 mainboard. Project ‘Falcon’ as it’s known internally aims to reduce the size of the main console components such as CPU & GPU from the standard 90-nanometer process down to 65-nanometer."

[...]

"Moving from 90 to 65 nanometer fabrication could in fact reduce component costs by a staggering 50%"

Click through for the entire artile: 

http://www.xbox360wire.co.uk/2007/07/18/redesigned-falcon-xbox-360-coming-sooner-rather-than-later/

Nice find.

I think I'll buy a 360 whenever they cycle through all the old consoles, and I have a better chance of not having a warped motherboard.

If they could make the 360 cost $200.....

My god, it would be chaos. Combine that with Halo 3, and the sales would be epic.

nice. MS needs this reduction. My brothers, whom I helped get a 360 for xmas/eid gift in December, have finally had their RROD. They had to turn it off for about an hour and it restarted ok. I told them to keep plugging along until this holiday when hopefully the newer model comes out. Then if it RROD's again send it in and pray for a replacement.

Wow, thats crazy so little can save so much.

Chances are they'll start using something a little better than the cheapest friggin parts they can find. While that'd prevent them from halving the cost it'd sure be a nice way to insure their consoles don't fail so horribly.

Well, 50 % ....just amazing !

does someone know if 50% price drop has already occured in the videogame world beofre ?

^^ it only means that MS will save 50% on production, not that those savings will be passed down to us, MS needs to make money of these things soon, so I would bet on a 100$ price drop and a game bundled (or a memory card for the core)

El Dude, most likely, the cost savings will be passed down to us, as MS is in dire need of a price drop.

IMO, the 50% reduction is also probably in other ways too. For all we know, we could be facing an entire X360 redesign with Falcon helping out.