From spong.com:
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The Race for a New Game Machine [book] details how Sony, Toshiba and IBM formed the Cell partnership in 2001, each committing several hundred million dollars. It was agreed that IBM would be able to sell the Cell to third-parties. Everybody gathered at IBM’s Austin HQ.
Then, in 2002, Microsoft approached its old ally-cum-adversary, IBM, with a view to Big Blue creating a chip for a new game console.
This lead to what could be seen either as a comedy or a tragedy depending on your loyalty. Agreements meant that engineers within the IBM team could not share knowledge with Toshiba or Sony colleagues regarding their Xbox 360 chip design. This lead to work being hidden while simultaneously the Sony Cell was in test just below the room where the Xbox 360 internals were being put through their paces.
According to the Wall Street Journal, Mr Shippy “felt ‘contaminated’ as he sat down with the Microsoft engineers, helping them to sketch out their architectural requirements with lessons learned from his earlier work on PlayStation”.
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Full Story: spong.com