Further announcements from Microsoft concerning its forthcoming Xbox hardware platform are now believed to take place later this May, one month later than originally expected, but that hasn't slowed the rumor mill one bit. Bloomberg has reason to believe based on sources close to the matter that Microsoft will be turning to chipmaker AMD to provide the processors for its next console, and these sources even suggests AMD's upcoming "Jaguar" microarchitecture could figure into the hardware's system-on-a-chip. Recall that Jaguar has been tied to the 8-core processor for the PlayStation 4.
AMD requires no introduction to anyone even remotely familiar with PC hardware and graphics cards; you ought to pay our hardware section a visit if the name doesn't ring a bell! If Bloomberg is on to something here, Microsoft's decision to go the AMD route means the software and console giant will be looking to adopt more mainstream PC architecture this time around.
Microsoft will hardly be alone in their purported shift in gears to x86-based system architecture for its upcoming console, as Sony recently revealed to much fanfare that its PlayStation 4 platform will also use a custom system-on-a-chip processor from AMD (as opposed to making their own "Cell MkII" or something). Sony lead system architect Mark Cerny then described the PS4 as featuring "supercharged PC architecture" that will at the same time be more developer-friendly than previous generation Sony platforms.
More importantly, turning to chipmakers like AMD means that console giants will not have to spend as much designing their own chips, bringing production costs down. It wouldn't be surprising to find that Microsoft will be turning to AMD for the same reasons once May's announcements come around.