Microsoft is planning another hardware update for the Xbox 360. This new update is all under the hood and won’t affect the look of the machine very much if at all. New Xbox 360 slim consoles will come with a new System on a Chip that will put the CPU, GPU, system memory and I/O logic all on the same piece of silicon.
This should make the console quieter, allow it to have an even smaller power pack and also generate less heat. It will actually be cheaper to manufacture than the old multi-chip system, so Microsoft will make more profit on each console sold.