http://msnerd.tumblr.com/
"The Xbox is another story altogether. With a heady mix of rumors, tips and speculation, I am now stating that Xbox codename “loop” (the erstwhile XboxTV) will indeed debut a modified Win9 core. It will use a Zune HD-like hardware platform—a “main” processor with multiple dedicated assistive cores for graphics, AI, physics, sound, networking, encryption and sensors. It will be custom designed by Microsoft and two partners (update: AMD, Imagination Technologies & Samsung are three names I’ve heard so far) based on the ARM architecture. It will be cheaper than the 360, further enabling Kinect adoption. And it will be far smaller than the 360. "
I'm not sure if this rumor has been talked about here yet, but I'm wondering what people think about it. I'm not really a technical guy, but I keep hearing that this new Xbox will feature an ARM-based heterogeneous system-on-chip (SoC) with multiple dedicated assistive cores. Supposedly, there is no way that an "ARM" based processor could be super powerful, so it seems that Microsoft isn't very interested with making a technological wonder. It does say that Microsoft is very interested in having a system that isn't going to overheat, but at the sacrifice of raw power.
I wonder if games will really look all that much different?
Also, the rumor is that this new Xbox will be announced THIS January at CES. Not much of the console will be shown, not even an image of the console. Most likely just the name, and maybe some talk about it's features. Then, at GDC in March, the console will be officially unveiled, with all of the detailed specs, and perhaps even a demo of what it can do. Then at e3 next June, Microsoft would pretty much unveil everything Xbox Loop (until we have a better idea it's real name), and announce it's November 17th, 2012 launch.
It all sounds crazy, and way too fast imo, the Xbox 360 is still selling very well, it can sell well at $199, it's not like they are selling for only $99, and hardly anybody has any big games coming for it. I honestly can't see this rumor being totally true. I guess we'll find out at CES. If there isn't the slightest peep at CES about the next Xbox, then I would guess it's a 2013 product.