Well, the processor array (3 CPUs) delivers 3.2 Ghz. each and the ATI video card clocks an amazing 500 Mhz. The RAM is now 512 Mb. which is 8 times more than the original. What this means in terms of performance? The 360 deliver 4 times more polygons and 4 times more frames per second than the original Xbox. This is a super knockout in terms of graphics. The 360 is optimized for 16:9 screens (widescreen) and HDTVs. Even if you have a normal TV is going to look much better, but if you have High Definition....wow. Additionally, the controls are wireless from the box (without additional peripherals) and it has build in USB ports to connect music and video devices, as well as Windows XP and Media Center. It of course has also more storage capacity (20 Gbs). That's it in a nutshell....amazing, uh?

Besides the big boost in graphics that astaroth explained pretty well, the 360 also improves xbox live. It is similar too the buddy system on windows xp. When you find a friend, either by sending or receiving a friend request, anytime you turn your 360 on, it will let all your friends know you are online. It does not matter what you or they are doing, a little bubble appears at the bottom of the screen saying "so-and-so" is online. You can also send text and voice messages to anyone you have met in a game. It is even possible to have a personal chat playing totally different games, which I have done. You can also use the new xbox live marketplace to download new demos and videos for games. You can get a demo as soon as it is out, which is nice. Demos and videos are always free too. You can also buy classic games like Gauntlet and play them online with friends! These games are not sold in stores, they are only on xbox live arcade. There are some cool new games in arcade as well. Now, you do need to buy any live arcade games, but they are very cheap, about $5. There are also downloads for 360 games like new cars for pgr3 and new levels are on the way for PDZ. In fact, I think that the new live is the 360's best feature, not the graphics (but they sure are sweet!)