A report from Taiwanese CENS indicates that Microsoft has started production on yet another Xbox 360 hardware redesign dubbed Jasper. We first reported about Jasper back in October 2007.

Apparently TSMC has been chosen to make the 65nm graphics chips and north-bridge chips for the Xbox 360 Jasper version. The new Xbox 360 consoles are expected to ship in August.

Apparently Microsoft is running out of 90nm chips for the currently shipping Falcon Xbox 360 hardware.

The Xbox 360 Valhalla is supposedly the next iteration of the Xbox 360 scheduled for 2009 that is supposed to integrate both the GPU and CPU in a single package.
More details on CENS. Via DailyTech.