Microsoft’s Xbox 360 console will be getting smaller chips, with news breaking the popular games console will soon be using 65nm GPUs.

Revisions to the cooling and a smaller CPU have already helped later model consoles avoid the dreaded red ring of death, but the news the next revision of Xbox – code-named Jasper – will have a smaller graphics chip, replacing the current 90nm IBM designed chips, will be welcomed.

Smaller, cooler, more productive

According to Taiwan’s CENS, Microsoft have contracted Taiwanese companies Taiwan Semiconductor Manufacturing Co. (TSMC), Advanced Semiconductor Engineering Inc. (ASE) and Nanya PCB Corp.to make the GPUs.

The smaller chips will generate less heat, believed to be a major factor in early XBox’s dismal reliability record.

The Jasper versions of the console are expected to become available in August of this year, with another version, codenamed Valhalla, expected in 2008.