IBM said Friday it had begun shipping the first processor chips to Nintendo intended for use in its next-generation "Wii" gaming console. The chip, code-named "Broadway," is said to offer a 20 percent reduction in energy consumption.

Big Blue's processors can now be found in every next-generation console. The Wii sports a processor based on the PowerPC architecture; Microsoft's Xbox 360 is a triple-core PowerPC processor running at 3.2GHz; and Sony's PlayStation 3 includes a cell processor that IBM co-developed with Sony and Toshiba.

"The first chips are in our possession," Nintendo's Senior R&D Managing Director and General Manager Genyo Takeda said. "Today's milestone marks the final stage of our drive to reach both core and nontraditional gamers with an inviting, inclusive and remarkable gaming experience."

Nintendo's agreement with IBM calls for millions of the chips to be produced, which would employ IBM's power-saving Silicon on Insulator technology. All processors would be produced at the company's East Fishkill, N.Y. production facility.

"The IBM team has worked hard to design, develop and deliver this customized Power microprocessor for the worldwide launch of Nintendo's new system," IBM Technology Collaboration director Ron Martino said.

The agreement is not the first time the two companies have worked together. In 1999, IBM negotiated an agreement to produce the "Gekko" chip at the heart of the Nintendo GameCube console.