Right now, the yields on 65 nm are both per centage wise less than 90 nm, but yield less die per wafer. So, short term, MS will either be paying more per die, or will be pounding on the vendor for bigger discounts.
Going from 90 nm to 65 nm doesn't really give you that much better of a price reduction. And the cooling issues are nice, but probably won't be much. I doubt they will be $80 worth. MS is just going to cut their profit by 3%.
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Yields
Right now, the yields on 65 nm are both per centage wise less than 90 nm, but yield less die per wafer. So, short term, MS will either be paying more per die, or will be pounding on the vendor for bigger discounts.
Going from 90 nm to 65 nm doesn't really give you that much better of a price reduction. And the cooling issues are nice, but probably won't be much. I doubt they will be $80 worth. MS is just going to cut their profit by 3%.