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JazzB1987 said:

Xbox ram need more power and gets hotter = needs better cooling = needs more space.

PLUS

xbone is going to be a living room multimedia device. All have the same width. You can place your DVD player on top of your bluray player on top of your xbone on top of your AV-Receivers etc.

Its a standartized width etc.

I hadn't thought of that--excellent point.  The size makes sense given their focus on it being a set top box right on top of your cable/satellite receiver.  I don't agree with the direction they're going, but that does make sense given that this is their focus.

This, and everything Microsoft makes has always seemed very large to me--consoles, controllers, etc.  I think it's because their approach to console design has mostly been more "build a custom gaming PC and slap a dedicated OS for gaming on it" rather than "design a game console."  That's not meant to be insulting to their approach at all, just my observation.

Microsoft comes from the PC business, Sony from the consumer electronics business, and it shows.