Starting next year the three core PowerPC superchip inside the Xbox 360 will move from a 90 nanometer manufacturing process to a 65 nanometer manufacture – basically a fancy way of saying that the chip will run cooler and consume less power (maybe allowing Microsoft to reduce the size of that insane power brick?)
Don't count on the cooler chip reducing the jet-engine-esque noise that comes from a full-tilt 360, though: most of that noise is actually caused by the DVD drive, and there's no word on when Microsoft plans to replace that little nasty.
via Digg
UPDATE: TeamXbox brings us the news that these changes have been delayed and won't happen until mid-2007.