A number of pictures obtained by Kotaku seem to suggest that Microsoft has embarked on a major redesign of its Xbox 360 console.
According to Luke Plunkett, the new console architecture combines the CPU and GPU into a single, small chip.
"The pic above shows the board in question, with the chip part of a rumoured redesign for the Xbox 360 console, testing of which has recently been completed in China," wrote Plunkett.
"This isn't simply a new board for the existing hardware, either; it's reportedly a total redesign of the console. Think the PS3 Slim, only...for an Xbox 360."
However, Plunkett acknowledges that "there was every reason to be skeptical" of the images and accompanying data.
"Then again, with Natal due later this year, rebooting the 360 itself to go along with it would make a lot of sense, especially if a reduction in size could come with a reduction in cost," he added.