Xbox 2 to Sport IBM ChipMicrosoft Corp. today announced that it has entered into a semiconductor technology agreement with IBM Corp. Under the agreement, Microsoft has licensed leading-edge semiconductor processor technology from IBM for use in future Xbox® products and services to be announced at a later date. "Microsoft is already developing the software and services that will drive the Digital Decade," said Robbie Bach, senior vice president of the Home & Entertainment Division at Microsoft. "By combining our vision, software experience and R&D resources with IBMs computer and semiconductor technologies, we plan to deliver unprecedented and unparalleled entertainment experiences to consumers while creating new engines of growth for the technology and entertainment industries." According to Bernie Meyerson, IBM Fellow and chief technologist for IBMs Technology Group, the new Xbox technologies will be based on the latest in IBMs family of state-of-the-art processors. "IBMs advanced chip technologies are in demand across a wide range of industries and applications," Meyerson said. "Were excited to be working on a project of this magnitude and that Microsoft has chosen IBM to provide technologies that will power future consumer devices and expand the boundaries of whats possible in entertainment."