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If they do do a redesign, I hope they don't go the integrated power supply route.
Yes, Sony managed it so there's technically no reason why MS can't, but the extra heat source inside the box due to the power supply might need a radical shift in MS's design philosophy.
Look at the size of the current X360 even without an internal power source. It's quite large.

the hard drive issue, i don't think, will actually be an issue. they could get around this by forcing the new model to be horizontal (easier on optical drives) and put a slot for the HDD on what would be the top of the unit imo.

If they keep the power brick, I think they could be onto a winner if they do this redesign.



Proud Sony Rear Admiral