Since it won't go anywhere near the Wii Fit balance board and is extremely likely to die during a heated workout, your obese Xbox 360 isn't going to get thinner in its lifetime. No, that's what the "Xbox 540" replacement is for, claims TG Daily. The site reckons that Microsoft will release a "mid-cycle refresh" of the system in Fall 2009, one built around a new and more compact "Valhalla" internal chipset. (Have we introduced you to Jasper yet?)

The shrinking of innards will reportedly allow a redesign of the system's exterior, much like the PlayStation 2's second iteration. Our fancy next-gen games may be getting bigger on the screen, but much like our Wiis, it seems we'll end up with something smaller to play with. On. Play games on. Multiplayer games. Curses! is there any way out of that one?

Update: Microsoft says it has "no plans to release a new console in 2009."

[Via X3F]

Reports that Xbox 360's Jasper chipset will begin shipping in August continue to hum along, as China Economic News Service has named three Taiwanese companies that have been contracted to manufacture, test and package the pair of 65nm microprocessors in preparation for a summer rollout. Taiwan Semiconductor Manufacturing Co. (TSMC) will build the chips, Advanced Semiconductor Engineering will test and package them, and Nanya will supply flip-chip packaging substrates (which sure do sound important). The Jasper combo will ideally use less power, simplify cooling and, most importantly, cut back on the console's jibba jabba.

Industry analysts have also pegged TSMC as the primary candidate for Valhalla chipset production (in addition to the Jasper contract, TSMC has also built 90nm chips for an older version of Xbox 360). Valhalla is rumored to be a single super-chip that combines the properties of a 65nm CPU and 65nm GPU, and is expected to be incorporated into Xbox 360 hardware in the fall of 2009.

[Via X-bit Labs]

We know it's a little weird to be pumped for Xbox 360 chipsets, but we here at Joystiq HQ are all pretty excited about "Jasper". When we see each other in the halls we'll often exchange a look and we don't even need to speak it, we just know: It's Jasper. Now, if Jacob Metcalf (the guy who broke the Bungie/Microsoft split story) is right, we'll have to start exchanging an additional two looks for the upcoming "Opus" and "Valhalla".

The first, "Opus" is basically a third-generation ("Falcon") board built to fit first generation ("Xenon") cases, primarily for the recycling of red-ringed systems, giving them cooler, more dependable guts (though no HDMI). The second, "Valhalla", is rumored to combine the 65nm CPU and 65nm GPU into one awesome super chip. It would only require one cooling system, meaning Valhalla would be quieter and (one would hope) more dependable. It would also be considerably cheaper.

Both chips (again, if Metcalf is on the money) are a ways off, with Opus coming in 2008 or 2009 and Valhalla following a year later. As excited as we are for the new builds (even though our eyes are getting sore from exchanged looks) we'll be happiest if this news means Microsoft won't euthanize the 360 as quickly as its predecessor.

Jasper is both the name of the of the next Xbox 360 chipset, and an old prospector heading to the rocky hills of Utah, planning to strike it rich on "The durned richest haul you've jest about evar seen! Yeehaw!" Which one comes to mind first when you hear that name?

Basically the hurricane-like string of Xbox 360 chipset names continues. First we had Zephyr, then Falcon, and now sometime next August, Jasper. What does Jasper bring? We're glad you asked. According to Dean Takahashi at the Mercury News, it brings exciting things like ... a 65nm graphics chip from ATI, and smaller memory chips.

This isn't all that exciting, since the current Falcon chipset uses a 65nm processor already, but it means that Microsoft is still working on bringing production costs down. Which could also translate to even cheaper Xbox 360s next holiday season ... meaning 2008, three years after the introduction of the system. We're all for cheaper prices, but we like added value too. Zephyr brought us HDMI, why can't Jasper bring us something. At least milk and cookies.