We've learned from industry sources that AMD / ATI has already won the GPU deal for the next generation XboX console. It looks like Microsoft was happy with first Xeons GPU and it wants to continue using the same, especially since the new ATI GPU should keep the compatibility with legacy games.

The consoles refresh was supposed to happen in 2010 but due to the recession both Microsoft and Sony have decided to push its plans for 2012 and keep the Xbox 360 and Playstation 3 alive for more than it was originally planned.

We don’t know how the GPU looks like but judging from the timeline when it is supposed to be delivered we suspect that it might be a 28nm part.