Intel provides processors for the Xbox 360. Intel has a new 32nm chip codenamed 'Clarksdale' that combines CPU and GPU. A Chinese website has displayed what looks like a new Xbox 360 board with what could be the Clarksdale. Bingo!
Actually, given that Microsoft is readying Natal for a huge marketing campaign in the lead-up to the 'The Holidays', and the company wants to get the price firmly in budget for hard-pressed households, a more efficient, slightly smaller 360 would sit very nicely.
Kotaku surmises that "Making things juicier is word from the same source that this reduction is part of a redesign for the Xbox 360 console, testing of which has recently been completed in China. Think the PS3 Slim, only... for an Xbox 360."
Still, Chinese message board... that kind of lead never turned up anything like, well, a PS3 Slim did it?A9VG