Speaking to 360Fanboy, a Microsoft spokesperson stated: “We are constantly updating the console's more than 1700 internal components. We can confirm that we are moving to internal memory for the Xbox 360 Arcade. The physical internal memory is the same size as the previous external memory units – 256MB.”
The new design, dubbed Jasper, uses 65nm CPU and GPU chips leading to lowered power consumption and heat, which in theory should provide a quieter gaming experience.
New models can be identified by the 150w power consumption of the machine’s power brick.