Gaming's Surprise Winner: IBM

If you were to bet on a single winner in the next video game-console cycle, forget Microsoft(MSFT Quote), Sony and Nintendo. Put your chips where those console makers did -- on IBM(IBM Quote).

All three companies chose IBM to help design and manufacture the gaming chips that are powering their next-generation video-game consoles, a first for the video-game industry that puts Big Blue in a powerful position.

"It's an incredible opportunity for IBM, because whoever wins this market ... IBM is involved," says Chris Crotty, a senior analyst who covers consumer electronics for electronics market research firm iSuppli. "It gives them a very strong starting presence in consumer electronics." ...