Microsoft will upgrade the CPU used in its Xbox360 games console early next year, the CPU's manufacturer has announced.

The move will allow the Xbox360 to reduce power consumption, heat as well as possibly increasing the speed and performance of the next generation console.

It is also reported that the new chip will allow Microsoft to cut the console's cost.

Many users have complained that the Xbox360 runs very hot after long usage causing the console to freeze or crash games.

Additionally one of the greatest complains from gamers is that the console's fan is very noisy.

"It's okay if you are playing games, but watching a movie on the console you really have to have the noise turned up to be able to hear it over the fan", said one Xbox360 gamer Pocket-lint spoke to.

The company making the new chip will start production in 2007.