According to Engadget, the second version of the Xbox 360, code-named "Zephyr" has had a photo leaked from a Xbox insider. It looks quite interesting; the only picture provided was a backside of the console. It's still white, but has some extra ports on the back.
It seems like Microsoft really likes names that start with the end of the alphabet. For example, remember the original code name for the Xbox 360? Xenon. Now, it's Zephyr. Xbox. DirectX. Need I say any more?
It doesn't seem like the processor brand has changed, although the size sure has. The Zephyr will now be featuring a 65nm processor, which is very small. It's also going to be cheaper, you have to remember that this chip also has royalities, so it might take a while before consumers see a price drop because of this chip.
The addition of an HDMI port is welcome, although some worry that Microsoft may have taken out the analogue ports while adding the HDMI. This would force consumers to buy a high-def TV to be able to use the Zephyr. This sounds so ridiculous I highly doubt that this will happen. However it turns out, people owning high-definition TVs will be happy, as the HDMI port will allow 1080p resolution, the highest quality of HD TV currently.
Another important feature is the 120 GB hard drive. However large this is, the question remains: how will Microsoft package this? If they put it in the higher-end model, the price will shoot up. I think the idea of Microsoft making special hard drives for the Xbox 360 is stupid, really. Since it's basically a glorified computer, why not support standard hard drives and then let the users upgrade them if they want?
Requests for more information from the insider such as price, packaging information, were withheld, but said they'd be provided, "soon".
Hehe, as long as it's not a fake. ;)