Now that Sony has officially announced its PS3 price reduction, Microsoft is expected to make its next move shortly. By switching from a 90 to 65-nanometer IBM CPU and AMD/ATI graphics chip, Microsoft will be able to reduce the x360's cost, size and heat, according to Mercury News' Dean Takahashi. Codenamed Falcon, the revised X360 is expected later this fall, and could include an internal power supply, or make use of the new space to add more costly things like it did with the Elite's HDMI.