Microsoft is working on a “new” processor chip that is said to be “five years in the making”. This system-on chip will cut the size of the power supply and motherboard and will be better with overheating and internal heat levels than the older models. It will also combine the CPU, I/O logic, memory and GPU into one chip.
There isn’t a time frame on when XB360 models with this new chip (or as other people are calling it: revamp of the chip that’s already in the new 360 units) will launch but when it does, there should not be any issues with compatibility nor software.
My guess, it might be released close to this year’s holiday season since this new processor chip does cut down on manufacturing costs. We just might see a price drop when these “new” systems launch and what better time than during the holiday season?