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Next Xbox may already be delayed due to chip manufacturing

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Xbox 360 S
Microsoft's next Xbox may have already been hit by a delay before the system is even announced, according to a report.

News site SemiAccurate cites anonymous sources claiming that Microsoft is having manufacturing difficulties with the processor for its next home console.

The processor is allegedly codenamed 'Oban' and being manufactured by AMD, a switch from current Xbox 360 chip maker IBM.

The chips are apparently being manufactured in vast quantities, indicating that they are being produced for final hardware rather than a smaller run of developer units.

The sources claim the issue is that a majority of the chips produced are of unacceptably poor quality, to the point of failing testing.

If the production doesn't start outputting a sufficient amount of viable chips before November, it could start to cut into manufacturing time for the actual system.

Whether the delay in production will impact the system's launch date will depend on when that launch date actually is.

Rumours have suggested that Microsoft is targeting a September 2013 launch for its next Xbox, in which case the production delays could very likely force Microsoft to push back.

More recently, analyst Michael Pachter stated the possibility of Microsoft delaying the next Xbox until 2014 in order to accommodate demand.

There seemed little reason for the delay at the time, but the move would be consistent with the manufacturing timetable if viable processors aren't ready before November.

Rumours have been picking up steam surrounding Microsoft's next console, after a series of leaked documents suggested it will integrate with Kinect 2.0 and the long-rumoured Xbox TV.

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