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The DigiTimes on Mon. reported that Microsoft Corp.’s Xbox 360 will receive a smaller 65-nanometer graphics processing unit this fall.

Citing the Commercial Times, the report says that production on the 65-nm Xenos GPU will start in May.

The Xbox 360 is currently sold with a 90nm chip. A 60-nm chip is likely to cost less to produce and produce less heat compared to the former solution.

Microsoft this week released the Xbox 360 Elite to U.S. retail. The new hardware configuration includes HDMI and a 120GB hard drive for $479.

E-tailers Amazon.com and Circuitcity.com sold out of pre-orders for the console prior to its release.

Microsoft has sold 5.3 million Xbox 360 units to date in the U.S. The Elite is sold next to current SKUs, including the Premium console and Core system.