San Jose Mercury News are indicating that they have received confirmation that the new more reliable 65 nanometer Xbox 360 consoles are to be available this Autumn. The smaller chip technology derives a number of benefits and should cut out the ridiculously high failure rate of the Xbox 360. However, Mercury News reports that Microsoft are going to keep the 'Falcon' under wraps as they don't want to put off current gamers from purchasing the 'old' Xbox 360 models on the market.

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"Falcon (the code name for the updated 360) is coming your way this fall," says Dean Takahashi after speaking with unnamed sources. "The first Xbox 360s with it are probably on ships coming from China."

The newer machines are said to cost less and improve reliability over current 90-nanometer 360 units that have been plagued with overheating issues causing a large number of systems to fail. As a result, Microsoft extended the warranty on Xbox 360 from one to three years in July.

"If you're in the market for an Xbox 360 but really want to wait for the highest-quality machine, in theory you might want to wait until Falcon," Takahashi adds. "You'll be buying a console that will last longer and have less risk of failure."