A CHINESE WEB SITE claims that the Xbox Next will use a special version of Intels Pentium M, it said.

That followed news yesterday that ATI and Microsoft, as earlier predicted, will cooperate together on the design of the Xbox.

Sources yesterday told the INQUIRER that the ATI deal with Microsoft includes a royalty deal that will mean the Canadian firm scoops up money "quarter after quarter", and isnt necessarily dependent on sales of the Xbox.

Read the entire story at The Inquirer.