To combat the red ring of death and other problems that plagued the 360, chip evolution and improvement has been an important consideration for Microsoft. The Falcon revision, for example, has improved things slightly.
Microsoft, then, hopes with this next update, codenamed Jasper, will let them put the rash of console problems behind them. Microsoft is setting up provisions to start updating the Xbox 360 with a 65nm GPU late August. This information is backed by a report from CENS, saying they already contracted with a few company’s to build the new chips.
It is also known that the Falcon chips are depleted, so that paves the way for a quick transition to Jasper. Reports are also saying that the next update after Jasper will not happen for a year after its release.