A story at Xbox365 this morning says that a company called Focus Enhancements in California has unveiled a new, cheaper video chip for the Xbox, which will be used in a new motherboard design. The chip converts video into TV-friendly formats. This is only the latest of a series of moves to help Microsoft reduce the cost of Xbox production; they are currently in arbitration with Nvidia over the cost of their graphics processor, and manufacturing partner Flextronics recently relocated production facilities for the Xbox from Hungary to China in order to further reduce costs.