According to PC Advisor, which cites comments made in a conference call held by processor producer Chartered Semiconductor Manufacturing, a "video-game device" manufacturer has ordered new 45nm CPUs to be produced beginning in late 2008 or 2009. As Chartered is known to be contracted by Microsoft, and as CEO Chia Song Hwee referred to a 65nm chip being produced for the same device, it is overwhelmingly likely the device in question is the Xbox 360.
Chia stated that the 65nm chips have already been in production for two quarters, suggesting their imminent inclusion in retail Xbox 360 systems.
Today's news follows reports by Dean Takahashi of the San Jose Mercury News revealing the 65nm chip's codename: Falcon. Takahashi expects the Falcon chips to begin being included in 360 systems this fall.