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Intel Loses X-Box CPU contract

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Tue, 11/04/2003 - 23:47 — Christoph C. Cemper

Intel Loses Xbox Contract to IBM – for its next Xbox release, Microsoft has chosen a processor built by IBM. Industry observers see the change — which no one had predicted — as a major win for IBM and a set-back for Intel, whose high-performance chips power many gaming applications. Its deal with Microsoft positions IBM to become a leading gaming-chip supplier. Big Blue makes the chip for Nintendo's GameCube boxes and is working with Sony to create a processor for the PlayStation 2 console.

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