So, according to
this post on Kotaku, the new box will be a 'kinder, gentler' console designed to woo new users into the fold. It will handle HD out of the box, and it seems that there will be 2 versions; a price sensitive entry level unit with only flash RAM and a more expensive one with a hard drive.
Do you folks think they're aiming at the HTPC market with the more upscale device?