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The rumors of Microsoft's Xbox 360 CPU going to a 65nm manufacturing process have been bouncing around for months, but we haven't heard much about the GPU yet. However, Digitimes (who also said the 65nm CPUs were delayed until mid '07) reports that Chinese-language paper Commercial Times claims the upgraded GPUs are coming in the fall and will be manufactured by Taiwan Semiconductor Manufacturing Company.

So for you guys who made a little wish to your fairy godmother that the Xbox 360 Elite was going to have cooler parts, you may want to wait until fall. And for those of you who already purchased an Elite? We're sorry.

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Xbox 360 GPU to go to 65nm in fall, TSMC to see side benefits, says paper [Digitimes]