The Xbox 360 Slim model is set to receive a new hardware upgrade, as Microsoft has announced an innovative system-on-chip processor that will be at the heart of upcoming versions of the home console. Microsoft's Xbox 360 saw a major redesign with the release of the so-called Slim model last year, which boasted an optimized hardware configuration as well as plenty of built-in features like a wireless connection. Now, according to the International Business Times, the North American company is getting ready to deploy another hardware update, this time for the internal components of the Xbox 360 Slim, in the form of a new system-on-chip configuration. In case you're confused about the name, the system-on-chip architecture basically sees the CPU (main processor), GPU (graphics processor), system memory as well as the Input/Output components all added into a single, powerful chip. According to the website, the new configuration allows for a better heat and power management in the new devices, meaning the new Xbox 360 will not only be cooler, as it will better dissipate heat, but also consume less power. The new chip is being built by IBM using the 45nm process, and is intended to rival AMD's new Fusion or Intel's Sandy Bridge processors in terms of power. Still, Microsoft insists that, through the implementation of latency and bandwidth limitators, the new system-on-chip will work flawlessly with older games because it is going to replicate the experience on current consoles, which have separate CPU and GPU processors. Basically, this new hardware upgrade will ensure that the Xbox 360 continues to work smoothly with all the new things coming to it, including new Xbox Game Disc format, which are going to premiere later this year, offer better support for the Kinect motion sensor, as well as for the upcoming New Xbox Experience that will debut this fall and refresh the interface of the Xbox 360. Sadly, for those who wanted a taste of the new and improved consoles, there's no word yet on when the new configuration goes into production.