The successor to the Xbox 360 will feature a GPU designed by AMD.
That's according to a report by Fudzilla, which suggests Microsoft will continue its partnership with the tech firm, already responsible for the custom Xenos GPU for the Xbox 360.
The site also speculates that a brand new home console from Microsoft would be released in 2012, after the economic crisis pushed back a planned 2010 launch.
It adds that use of the AMD GPU should ensure compatibility with legacy games.
This latest report echoes predictions made by Cevat Yerli of Crytek at last year's GC Developer Conference. Then, the company's president said the "PlayStation 4 and Xbox '720' will arrive in 2011 or 2012" although added there were good reasons why it should be 2010.