Microsoft Xbox 360 System is much smaller than its predecessor -- it measures approximately 3.3 by 12.2 by 10.2 inches and weighs 7.7 lbs. It's powered by custom IBM PowerPC-based CPU with three symmetrical cores each running at 3.2 GHz. It also carries a custom ATI graphics processor loaded with 10 MB of embedded DRAM, 48-way parallel floating-point dynamically scheduled shader pipelines and Unified shader architecture. This is powerful enough to draw 500 million triangles per second. In other words, it makes for great looking games in standard TV definition, and even better thanks to built-in support for HDTV 1080i televisions. It also supports the widescreen 16:9 format.

The Microsoft Xbox 360 System has a 12x dual-layer DVD-ROM drive, which plays both the game media and progressive-scan DVD movies right out of the box. For game-save and media storage, users can choose between the detachable and upgradeable 60GB hard drive, or a separately sold 64MB flash Memory Unit. Along with storing files, the hard drive will make the Microsoft Xbox 360 System backward-compatible with part of the existing Xbox game library.