Wow. This really takes us back to when we thought the Xbox 360's AV port was capable of digital out and it was only a matter of time before Microsoft released a proper HDMI adapter. Then came rumblings of a revised motherboard with an HDMI port located underneath the AV port (hmm ... curiously like the image above). Then back came the rumors about that HDMI cable.
Now, thanks to the above image nabbed by our buddies at Engadget, what's purported to be the second Xbox 360 (codenamed "Zephyr") can be seen rocking a dedicated HDMI port, for pain free 1080p. Also rumored to be included in the Xbox 360 v2 is a 120GB HDD, making those high-def downloads a little more palatable. No word on whether they're going to drop the comically priced $100 WiFi adapter and build that in as well, but the WiFi mounting brackets on the back aren't very reassuring. Although Engadget's insider says we can expect it "soon" we're left wondering about those smaller 65nm processors that were recently delayed. Are we gonna have to wait for Xbox 360 v3 for a cooler, quieter 360?