Microsoft Developing Console Chips
The Cheesecake writes "The New York Times is running an article that says that Microsoft is looking into designing and developing microchips. These will primarily be for the next generation of the Xbox. They also mention it could be used for things like voice recognition. They look to be doing this through a process designed by UC Berkley which makes it possible to reconfigure computer designs without the cost of making finished chips."
IBM's PowerPC design is in all the next-gen consoles, PPC was in Tivo too. IBM has a lot of PPC systems in the Top 500 supercomputer list. I wouldn't call PPC a commercial failure. A lot of embedded designs still use ARM variants (Intel's XScale was derived from DEC StrongARM), among others. I think MIPS is used in a lot of embedded systems, take a look at Linksys's WRT54G. When you get away from what you'd call a conventional computer, there are a lot of viable CPU architectures.