New Cpu:

Microsoft has announced that the hardware side of the Xbox 360 will be seeing some upgrades. The new CPU will be built using technology that can reduce heat and power consumption, as well as potentially increasing speed. It will also help Microsoft cut the console’s cost.
The new and improved Xbox360 CPU will be manufactured using 65 nanometre technology, instead of the existing CPU’s 90nm technology, starting in the first quarter of 2007. The new 65nm technology is also capable of running software faster than that used in the existing Xbox 360 CPU, Chartered said.
But the company did not mention whether the CPU’s performance when running software would be upgraded in any way to take advantage of this potential.

External HD-DVD for Xbox 360:
Microsoft also today gave details about the HD-DVD Drive For Xbox 360, more details about it at the source..