ATI GPU powering the next Xbox, next-gen in 2012?

I do believe we may have the first next-gen console tech rumor on our hands here; According to unnamed sources, Microsoft has chosen AMD/ATI to again deliver the graphics processor for their next Xbox. It appears Microsoft is happy with the company’s Xenos GPU that’s powering the Xbox 360 and wants to continue the relationship, which would presumably also guarantee backwards compatibility with current-gen games.

Apparently the next generation was supposed to begin next year but, due to the not-so-good economic climate, both Microsoft and Sony’s next systems are now thought to be released in 2012.

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