Engadget received an image of what appears to be the second generation XBOX 360 codenamed Zephyr.

This console bumps the hard drive up to 120GB and will use a new, cooler Xenon PowerPC 65nm processor (hopefully it will run quieter than the first version) to replace the hotter 90nm processor.

In addition, the XBOX 360 version 2 will come with a built-in HDMI port with full 1080p High Definition Support (version 1 has 1080p support but via firmware and uses component).

What else would be nice if Microsoft added built-in HD-DVD and Wi-Fi to really compete against the Playstation 3.

Now with HDMI

There is no pricing but Engadget believes it will be released "soon".