Hot on the heels of the cheaper 20GB PS3 it has emerged that Microsoft is working on a more cost-efficient model of its own. Say hello to a new Xbox 360, code-name 'Jasper'.

Actually, readers with long memories may recall that Microsoft began making moves in this direction some time ago with the much-discussed ‘Falcon’ chip. Jasper is merely the latest rendition in chain of developments that will hopefully result in cheaper ‘Boxes for all in the fullness of time. If not sooner.

According to the San Jose Mercury’s resident geekazoid, Dean Takahashi – okay, he knows more than a thing or two about what goes on behind Microsoft’s silicon curtain too – the new Jasper iteration will feature a fully revised 65 nanometre chip that is not only smaller and thinner, but cooler and much cheaper to produce. All that being the case we should be looking at further price cuts and a quieter machine, assuming that Microsoft won’t need to use the same turbo-fan (as otherwise used to levitate seagoing hovercraft) to keep this new chip cool. At least that’s the theory.

Anyhoo, the new Jasper-fied Xboxes will ship in late 2008. We’ll we’d expect a significant price drop then anyway, wouldn’t we…?