After close to two months, more details on Microsoft's Project Falcon have risen: it's a new model of the Xbox 360, built with a board that houses the Microsoft 65-nanometer chip. Said to be Microsoft's counterattack to Sony's US$ 100 price cut at the time, it seems the project is so secret that the Microsoft guys at E3 never even heard of it.

Journalist Dean Takahashi is at it again and his recent report detailed the said project. Should the news prove true, the 65-nm chip is a significant step from the former 90-nm. Not only would this mean less heat and more reliability for the console, but it will also cost less. This answers a lot of concerns that have plagued Microsoft for some months now. If the cheap chip is real, it is probably the reason Microsoft was able to implement its price slash.

The first batches of the Xbox 360 Falcon are said to currently be on their last stages in manufacturing. We'd probably get some more details and confirmation before the new models come in reportedly this fall. In case you're interested in reading the entire report, click the link below.