Engadget has an article up detailing a possible new model of the Xbox 360 console. The unit (codenamed Zephyr) will feature a new 65nm processor (for cooler operation) as well as an added HDMI port for full 1080p output (the current Xbox 360 does allow 1080p output, but its limited only to those with a VGA cable, which is an analog connection. 1080i/720p is also output through a Component cable).
The site also reports from their source that the system may come bundled with a 120GB hard drive. No other details including price or release have been announced.
Head on over to Engadget for the scoop.