Specs:
Custom IBM PowerPC-based CPU Three symmetrical cores running at 3.2 GHz each
Two hardware threads per core; six hardware threads total
VMX-128 vector unit per core; three total
128 VMX-128 registers per hardware thread
1 MB L2 cache

CPU Game Math Performance 9 billion dot product operations per second

Custom ATI Graphics Processor 10 MB of embedded DRAM
48-way parallel floating-point dynamically scheduled shader pipelines
Unified shader architecture

Polygon Performance 500 million triangles per second

Pixel Fill Rate 16 gigasamples per second fill rate using 4x MSAA

Shader Performance 48 billion shader operations per second

Memory 512 MB of 700 MHz GDDR3 RAM
Unified memory architecture

Memory Bandwidth 22.4 GB/s memory interface bus bandwidth
256 GB/s memory bandwidth to EDRAM
21.6 GB/s front-side bus

Overall System Floating-Point Performance 1 teraflop

Storage Detachable and upgradeable 20GB hard drive
12x dual-layer DVD-ROM
Memory Unit support starting at 64 MB

I/O Support for up to four wireless game controllers
Three USB 2.0 ports
Two memory unit slots

Optimized for Online Instant, out-of-the-box access to Xbox Live features with broadband service, including Xbox Live Marketplace for downloadable content, gamer profile for digital identity, and voice chat to talk to friends while playing games, watching movies, or listening to music
Built-in Ethernet port
Wi-Fi ready: 802.11a, 802.11b, and 802.11g
Video camera ready

Digital Media Support Support for DVD-Video, DVD-ROM, DVD-R/RW, DVD+R/RW, CD-DA, CD-ROM, CD-R, CD-RW, WMA CD, MP3 CD, JPEG Photo CD
Ability to stream media from portable music devices, digital cameras and Windows XP-based PCs
Ability to rip music to the Xbox 360 hard drive
Custom playlists in every game
Built-in Media Center Extender for Windows XP Media Center Edition 2005
Interactive, full-screen 3-D visualizers

High-Definition Game Support All games supported at 16:9, 720p, and 1080i, anti-aliasing
Standard-definition and high-definition video output supported

Audio Multi-channel surround sound output
Supports 48KHz 16-bit audio
320 independent decompression channels
32-bit audio processing
Over 256 audio channels

Physical Specs Height: 83 mm
Width: 309 mm
Depth: 258 mm
Weight: 7.7 lbs.

System Orientation Stands vertically or horizontally

Customizable Face Plates Interchangeable to personalize the console

Pretty cool eh I want one

Isn't this a little bit late....since E3 was already a few months ago..... and besides, it fugly! Looks like they hired the same people as apple did for their iPods (Which are ugly and overrated too). I'll stick to the PS3 as it has the better games, graphics and specs!

Microsoft has stolen someone else's idea again. Sony's PS2 stands on its end, which is a good space saving idea, so Microsoft goes and steals it!!! I agree with TimothyA that the PS3 is better and more people will buy it. I have tried wireless controllers before and they can get interrupted by the simplest of things such as a telephone or TV remote in the next room.

Ok, maybe the design is similar to the PS consoles - but since I'm already an XBOX user I like it because it's sleeker this time and not as boxy as the normal XBOX

They also say that you can change the color by personalizing it with your own skins - that's good because you can be creative as you like and the fact that the controllers are wireless...

hehe, no more tripping over wires..