Microsoft reportedly working on new Xbox One processor

It is rumored Microsoft is working on a new cheaper and smaller processor for the Xbox One, with AMD currently developing a 20nm 'slim' model. The current CPU is a 28nm technology, but AMD and Microsoft wants to innovate - while also helping make the console smaller - to entice additional sales, as the console struggled to keep up with the Sony PlayStation 4.

It's worth noting that 20nm architecture is expensive, and with such high demand from smartphone manufacturers, prices will likely remain high.

"This opens the door to a much smaller cooling assembly and a thinner chassis, which in turn leads to cost benefits throughout the whole manufacturing and distribution process," said Richard Leadbetter, a well-known and respected technology influencer. "Smaller consoles mean less packaging, meaning cost savings in physically shipping the units out from China to retail markets worldwide."