Microsoft has signed an architectural license agreement with ARM Holdings, meaning the software giant can now design its own ARM-based chips. While both companies downplayed the agreement—ARM noting that Microsoft “has been a member of the ARM ecosystem for years”-- the ramifications of this could be significant, especially with regard to Microsoft’s X-box games console and its Windows Embedded and Windows Phone platforms.
Could Microsoft-designed ARM processors make the company more of a player in the embedded space? And how does this impact long time Microsoft partner Intel? What do you think?