Microsoft - Upgraded 360 Prototype Exists

Last week, Engadget got their hands on some leaked pictures of an upgraded Xbox 360 nicknamed Zephyr (the original 360 is called the Xenon, for those of you that didn't know). This upgraded 360 will feature an HDMI port, full 1080p support, and a 120 GB. However, the existence of such a prototype wasn't confirmed until Chris Satchell, general manager of the game developer group at Microsoft shed some light on it, in an interview with Gamespot. Here is what Chris had to say:

"We're always working on prototypes and new technologies and just playing with stuff in Redmond to see what's interesting. I think at the moment we have the widest available connections on the system. If you want to get great HD, I think we've got a good solution for that. In the future it's interesting to see where standards evolve to."

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I wonder how this news will affect the sales of the Xbox 360. People may be a little hesitant to purchase the console now, as they’ll probably want to wait for the release of the upgraded version.