With the understanding that "a new generation Xbox 360 with new chips" is the holy grail of Xbox 360 gaming, and has been for at least a year or so, here's the latest rumors along those lines, this time from X-bit Labs (emphasis mine):

Microsoft Corp. reportedly plans to release a new version its Xbox 360 video game system code-named Jasper in August and has already assigned IBM and Taiwan Semiconductor Manufacturing Co. to make chips for the new game console. However, there are other important rumours: TSMC got orders to produce the chip for code-named Valhalla Xbox 360 design, which is rumoured to combine microprocessor and graphics chip in a single piece of silicon.

The code-named Jasper design of the Xbox 360 game console will use ATI Xenos graphics and memory controller hub (GMCH) made using 65nm process at TSMC as well as IBM Xenon central processing unit (CPU) produced at IBM’s 65nm nodes. The new system design is projected to consume less electricity, use less complex cooling systems and also produce less noise.

By contrast, current Xbox 360 design named Falcon utilizes GMCH and eDRAM cores manufactured using 90nm process technology at TSMC as well as CPU built at IBM using 65nm fabrication process. The first-generation Xbox 360 used 90nm chips.

Obviously, I hope this is true. It certainly can't happen quickly enough: The current-gen Xbox 360 is too loud, too unreliable, and consumes too much electricity, and it's unreal to me that the company hasn't addressed these serious issues in a serious fashion yet.