"At a certain point, Microsoft had to make a decision on where to place its bets, and it's placed its bets on Xbox," Brett Sappington, director of research at consulting firm Parks Associates, told the Mercury News on Monday.

That bet could be supported by another Silicon Valley company, according to a Monday report. Bloomberg News reported that Microsoft will use an Advanced Micro Devices processor in the new Xbox, which is expected to debut in the next two months.

From the article, "Biz Break: Microsoft sells Silicon Valley subsidiary, Xbox rumors propel AMD" by Jeremy Owens.

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