Xbox 360 "Jasper" rumoured

Microsoft is apparently working on a new variation of the Xbox 360, codenamed "Jasper," which will include a 65 nanometre ATI graphics chip, and smaller memory chips.

That's according to Dean Takahashi, writing in the San Jose Mercury News, and follows on from the now-released Falcon version which also made small improvements to the internal layout and chip sizes.

The move is likely the result of research into the infamous hardware failures that have plagued the Xbox 360 in the past, and according to Takahashi the 65 nanometre chip "will likely be one of the best things they can do to improve the reliability."