The rumor mill has been working overtime lately. Supposedly, there are rumors floating around the internet that Microsoft is working on a new upgraded version of their Xbox 360. This version 2.0 is rumored to have HDMI support for 1080p resolution and a 120GB hard drive. The high definition would be better used for downloading high resolution movies from the Xbox Live Marketplace.
The weak 20GB hard drive that is currently in the 360 is not nearly enough storage space to take full advantage of the Xbox Live Marketplace. Just out of the box, this so called 20GB of space becomes only about 12-13GB after its initial formatting into the 360 system. A hard drive upgrade is desperately needed in the 360, so hopefully Microsoft will acknowledge this problem in one way or another.
Microsoft has yet to comment about these rumors, but hunches are saying that if Microsoft will announce something about this upgrade, they will be doing so sooner rather than later.
Stay with mygamer.com as more details become available.