Vejle is not only the name of a city in Denmark, it is also the codename of the new processor in Microsoft’s Xbox 360. Vejle is a combination of a compute processor and a graphics processor onto a single chip. By combining the two onto one chip, Microsoft and IBM are able to reduce the power, reduce the cooling needed, and to make it less expensive. VentureBeat has published an article on this new hybrid chip.

Redesigning a game console is important even though the redesigns do not make the game consoles faster. The console performance has to stay the same in general because it allows game developers to target a stable platform. But it’s important to reduce the costs, power, and size of the consoles because the rival console makers are in a constant battle to lower their prices and make their machines more appealing to gamers.

via Lifting the veil on the hybrid processor-graphics chip in the new Xbox 360 | VentureBeat