The latest salvo in the console wars has just been fired by Microsoft according to the MercuryNews.  There will be several new improvements in the “Falcon” which will be a reduction in chip size from 90nm to 65nm in both the CPU and GPU(graphics chip). This basically means that the chips will be smaller and running faster, and at a cooler core temperature.  It also means that the machine will have less material and therefore cheaper to produce.  Does this signal a price cut?  No one knows for sure, but the Falcon will not cost anymore than the original 360, with the add-ons being the only price determinant.  The Falcon is the project name at the moment and no word on whether that name will stick.  Expect this to be available by the end of this calendar year.