Yah - splitting the install base would be silly.  I suspect if it's roughly the same size it's because they've squeezed WiFi in plus some other stuff so that you've got more in the same space.

Mind you, I saw the rumour there are two versions of Kinect, which sounds like a potential install base splitting move as well, so who knows?

Wouldn't adding more ram make it an entirely new console thus starting the 8th generation of gaming?

Hmmm, it really doesn't look thinner, I quite like the look of the current Xbox, in fact, I think both original consoles look great, especially in white and black next to each other like I have them.

I think the main reason for doing this would be for heat and sound reasons, and if I could get a good deal, I would consider upgrading my box to get a quieter model with a larger HDD and wi-fi

please dont tell me it cannot be set horizontally...

Assuming if this is real,  it barely looks any slimmer and smaller if you compare the disc tray to the size of it.  Seeing the current 360 disc tray size, it seems slightly smaller.  Its more like just a new look.

They need a price cut

-joke

it looks like a Wii with a skirt!

MS trying to appeal to tweenz!

-/joke

Reported.

@Shadowsoldier

They will get a price cut or maybe NATAL added to the $299 model as a "value pack in"

Ok

• External power brick probably remains (motherboard leak)
• HDD Wifi don't take up much space, especially internally. Wifi is no bigger than your thumb and a 2.5" HDD is vastly smaller than a 3.5" drive. 
• The Xbox 360 pulls around 80W from internal components. Based on the previous shrinks they ought to be using between 45-60W for the shrunk chips. They don't need all that space for 45-60W IMO so IMO it opens up the possibility that they might have pulled a Wii*.

*What I mean by pulling a Wii is a slight hardware update which increases performance 2-3* over the original whilst using the same basic but improved architecture. My reasoning is that its the best window to release new hardware for the next 1-2 years because all they need is "good enough 3D" to keep them going for the next 4-5 years before they do their proper in one update with Natal 2 and the Xbox 3.0 (if they release an Xbox 2.5)

Releasing Natal and then releasing new hardware in a couple of years doesn't make sense. They need to wait for both the camera technology/software architecture to improve significantly before they release version 2.0. However they can't easily compete with new technology in 2-3 years time with the existing Xbox 360 so its a compromise. Nothings confirmed of course, there aren't even many remotely credible rumours to support this possibility.

The reason why I brough it up is because Microsoft said a while back that they didn't think large generational leaps was the way forward. They wanted smaller and more frequent updates so who knows, a tick/tock strategy in technology seems to work for anyone who uses it. Tick = Xbox 360, Tock = Xbox 360 , Tick = Xbox 3. 2005, 2010, 2015 thats 5 years apart for each.