Update: Microsoft announced an updated version of the Xbox 360 on June 14, 2010. The new model has a smaller chassis, 250GB hard drive, and built-in 802.11n Wi-Fi, but no Blu-ray. See the Xbox 360 Slim product page for additional information.
A recent post on the A9VG forums has led many to believe that what you see above is the new "Valhalla" motherboard for the Xbox 360 console. Underneath that fan heatsink is supposedly a CPU/GPU combo chip that will allow for the overall size reduction of the board.
Sony was able to breathe new life into the PlayStation 3 when the company released a slimmed-down version of the console back in September, so we'd imagine Microsoft is attempting to follow suit. We'll speculate that this "Xbox 360 Slim" will go for the same price as a current Elite ($300), which itself could see a price drop when all is said and done.
To make things even more interesting, Engadget points out that Microsoft is currently hiring a motherboard design engineer for the Xbox 360 Console Development Team, so whether you want to file that under coincidence is up to you.
We'd imagine E3 would be the perfect forum to announce a console redesign, but judging by these preliminary pictures, we may just be seeing mock-ups and prototypes come June.
Would a slimmer Xbox 360 be enough to convince those without one to pull the trigger on a purchase? Let us know by sounding off in the comments section below.