I'm not sure how confident I am on the hardware side about the new xbox. On one hand, I'm sure they learned their lesson about creating unreliable hardware, on the other they're going to go for power because guys like Crytek and Epic will push them in that direction.
I'm not sure how powerful it will be at this point, though. The new CPUs and Graphics cards are power hungry infernos. If it's a rush job they may have to settle on less powerful tech but will probably bump up the RAM as a consolation prize to the tech heavy developers.
The one place I don't think they'll do bad is on the software side. From what I've read they're planning on making the next windows a unified OS to run on everything from phones to the next xbox. I'm sure it will have its kinks, but there will be a lot of innovation there as well.
It's definitely not going to be Avatar quality like who ever said unless they want their games running at .000000000000000000000000000000000000000001 frames per second.
3rd Party Wall of Shame
http://www.nintendoworldreport.com/forums/index.php?topic=30478.msg581036#msg581036
