Next Microsoft Xbox Console to Use AMD GPU?

From PC World: Tag as "really iffy rumor," but tech site Fudzilla is claiming AMD's GPU technology will once more do the heavy lifting under the hood of Microsoft's next video games console.

In a vague, perfunctory post, Fudzilla writes "We've learned from industry sources that AMD / ATI has already won the GPU deal for the next generation XboX [sic] console." Of course no sources are provided, much less offered up as anonymous, so anyone's conspiracy theories about said claim are as good--or bad--as mine.

Rationalizing the "decision," Fudzilla writes "It looks like Microsoft was happy with the first Xeons [sic - should be Xenos] GPU and it wants to continue using the same, especially since the new ATI GUI should keep the compatibility with legacy games."

Who's suggesting what here? Does Fudzilla mean "industry sources" are saying that? Or is this the wildly speculative leap it sounds like? Does Microsoft care about legacy game compatibility? Does anyone anymore?

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