Microsoft isn’t exactly having the ‘Best Week Ever’ but Dean Takahashi has confirmed that the rumored switch to 65nm processors codenamed “Falcon” will indeed be seen in the fall. The switch could possibly end the headaches caused by the RROD, which is costing MS $1 billion to reconcile with its die-hard fans.

The leaner and meaner 65nm chipset will not only be cheaper to make, but it will also stay a lot cooler than the 90nm chips currently running 360s. A possible price cut could also be announced this week and a new re-design should solidify the lead the Xbox 360 has over the PS3 despite its recent price cut.

Xbox 360 to Get 65nm “Falcon” Makeover This Fall [Daily Tech]