Last week, Big Blue announced the release of two new PowerPC chips, one a dual-core processor and the other a low-power version.

IBM made no mention of the chips being used in personal computers, although Apple CEO Steve Jobs has indicated his firm will launch new Macs using IBM technologies before the switch to Intel. Even so, IBM clearly is starting to eye more lucrative markets inside and outside the PC industry.

No PCs

IBM's newest chip is the dual core PowerPC 970MP, a version of the PowerPC 970FX found in Apple's G5 Power Macs. The company envisions selling the processor for use in entry-level servers as well as in clusters of high-performance computers.

The 970MP essentially doubles the performance of the 970FX -- available in speeds from 1.4 GHz to 2.5 GHz -- and enables power-saving features such the reduction of voltage and frequency on both cores or the option to reduce or shut down power on one core while the other works.

IBM also said it would launch a low-power version of the PowerPC 970FX designed to run on less than 20 watts of power. The device is slated for products in the embedded-systems market, such as printers or small consumer-electronics devices.

In both announcements, IBM refrained from including personal computers in its short list of possible end products for the processors.

Firsts and Fastests

Mac fans have put up surprisingly little resistance to the idea that Intel chips would run OS X software. Many welcomed the idea. Several analysts have acknowledged that IBM's PowerPC chips have been and are superior to Intel's.

Of course, one reason Apple switched is because it said IBM could not keep up with Intel's power-consumption technologies. Big Blue asserts it is capable of making chips that use less power for mobile PCs.

Still, as in any breakup, the "their loss" sentiment is not lost on IBM. Certainly, Apple sees an opportunity with Intel. But IBM continues the same chip development that allowed Apple to claim several firsts and fastests. Now, Big Blue will plow its research efforts into processors for game consoles and other consumer products that might one day knock the PC down a rung.

China Watch

"[Game consoles] are more than a niche; it's their strategy," said IDC chip analyst Shane Rau. "Given the way the supply chain works, chip makers are able to set the direction of device categories," he noted.

Large firms like Sony, Microsoft and Comcast are betting that a home-entertainment device, evolved from a game console or set-top box, will replace many of the PC's functions. IBM plans to be inside these new systems.

In addition to this, Rau sees a lucrative avenue for IBM in China, where the marriage of the Linux OS to PCs armed with PowerPC chips presents some intriguing possibilities.

"The PC is already a general-purpose device," he offered. "Watch for China, where IBM launched its chip technology licensing program Power.org."