chrplace writes "Brian Lewis, research vice president and chief analyst at Gartner offers his perspective on last years XBox recall: "The Xbox 360 recall a year ago happened because "Microsoft wanted to avoid an ASIC vendor," said Lewis. Microsoft designed the graphic chip on its own, cut a traditional ASIC vendor out of the process and went straight to Taiwan Semiconductor Manufacturing Co. Ltd., he explained.
But in the end, by going cheap — hoping to save tens of millions of dollars in ASIC design costs, Microsoft ended up paying more than $1 billion for its Xbox 360 recall.
To fix the problem, Microsoft went back to an unnamed ASIC vendor based in the United States and redesigned the chip, Lewis added. (Based on a previous report, the ASIC vendor is most likely the former ATI Technologies, now part of AMD.)""
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