Last May, Nintendo announced its new console was already in the works.

Several months later, another statement gave details that a system-on-a-chip (SOC) was being developed by its experts. Now, rumors are flying left and right that U.S. semiconductor firm AMD has been contracted by the gaming giant to make its SOCs.

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Tech news website Kitguru claims several industrial sources say Nintendo's next-generation gaming console will be equipped with graphics technologies designed by AMD.

In addition, the device will also be powered by what is believed to be an IBM Power general-purpose processor. The purported SOC is also being touted as an even more powerful SOC compared to that of Nintendo's Wii U.

While it's true the gaming company has been using both AMD and IBM components on its consoles for years, the decision to contract both firms for Nintendo's next-gen device means game developers are faced with new challenges.

New codes will have to be written if Nintendo wants to compete with the current high res and outstanding graphics produced by the Sony PlayStation 4 and the Microsoft Xbox One.

Nintendo has already leaked details to the public that its soon-to-be released gaming console will come with new and much better hardware. This is something they should definitely do, seeing that a lot of consumers and gamers have been quite disappointed with the not-so-impressive quality and overall performance of the Wii U.

Again, there has been no official statement from Nintendo as to whether these rumors about the AMD chip used in the Sony PS 4 and Xbox One will be used for Nintendo's new console.

TagsNintendo News, Nintendo Latest News, Nintendo Gaming Console, New Nintendo Gaming Console, Nintendo Gaming Consoles, New Upcoming Nintendo Gaming Console, Nintendo Next Gen Gaming Console, Nintendo Next Gen Gaming Console News