Rumor: Xbox 720 Might Be Delayed Due to Chip Manufacturing Problems

While its existence has not been confirmed at all, rumors are swirling that the next-gen Xbox might miss its purported 2013 release window.

In a story by tech site SemiAccurate, it claims that the processor in the Xbox 720 is being developed by AMD (a departure from the Xbox 360's PowerPC Chip by IBM) and should start rolling off the manufacturing lines in December. However, the site's "sources" claim that the AMD chip, codenamed "Oban," is being manufactured in the Far East, has run into a little snag.

Apparently, most of the "Oban" chips coming out of production aren't good enough to pass testing. What this means is with manufacturing having problems now, Microsoft might not be able to make enough Xbox 720s to meet demand for a late 2013 launch (the long rumored launch window of the next Xbox).

While the report also claims that things could get sorted out,things aren't looking as rosy as Microsoft would have hoped.

Adding to their woes, If the manufacturing problems aren't resolved later this year, that means the Oban chips won't be shipping in mass quantities by February and in turn, Microsoft might have to delay the Xbox 720 into 2014.

The report also states that Microsoft is telling everyone "downstream" that there is no problem, no delay and everything is going well as to cover up this little mess. 

Of course, keep in mind that this is still very much a rumor. Microsoft hasn't even acknowledged the Xbox 720's existence, much less a release window. Nevertheless, it's a next-gen rumor so we're here to report it.

Would you be fine with the Xbox 720 releasing in 2014 or is it high time we get new consoles next year?