A new book detailing the history of the processor development that led to the CPUs running both the Xbox 360 and PlayStation 3 has raised allegations that the hundreds of millions of dollars Sony funneled into chip research actually ended up helping its rival Microsoft. Sony initially approached IBM for help designing the Cell processor that it hoped would give its next-generation console a leg up on the competition. Sony, Toshiba, and IBM partnered to share engineers and resources, with Sony putting in $400 million and building the plants to actually manufacture the chips. Mid-way through the development, Microsoft asked IBM for help putting together a processor for its own 360 console.

While the Cell was still being worked on, Microsoft signed up to have IBM design chips using the new core, what would become the Xenon chip now used in the 360. As part of the development deal, IBM was always allowed to license the tech to other companies, but apparently Sony hadn't expected IBM to do so while the chip was still being planned out. When it came time to begin manufacturing the chips, the first run failed, which would have left both companies empty-handed, except that Microsoft had the forethought to line up a backup manufacturer in case something went wrong.

In the end, Microsoft got its finished chips first, Sony unknowingly heavily subsidized their development, and Microsoft was able to beat Sony's console to market.

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