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Microsoft’s First Chip Brings Tank-Finding Design to Xbox

Microsoft Corp., seeking to fend off competition for its Xbox game console by souping up the Kinect motion sensor, is tapping a new semiconductor developer: itself.

For the first time, the company will build its own processors based on an in-house design. The new chips will make Kinect more accurate and responsive using an imaging technology found in military gear, said Cyrus Bamji, who played a key role in developing the silicon architecture. Previously, Kinect relied on an off-the-shelf chip from Israel’s PrimeSense Ltd.