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says it has shipped the first batch of microprocessors for


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new Wii video-game console.

According to an agreement made between the companies earlier this year, IBM will produce millions of the chips, which use its silicon-on-insulator technology based on a custom design for Nintendo. The technology improves processing power while reducing energy consumption by 20%, IBM says.

IBM has been making microprocessors for Nintendo since 1999, when the companies agreed that IBM would design and manufacture the central microprocessor for the Nintendo GameCube. The Wii console is expected to go on sale within the next few weeks.

Shares of IBM closed 88 cents, or 1.1% lower, to $79.40 Thursday.