According to a report published by gadget gurus Engadget, the Xbox 360 (originally known as the Xenon) is about to get a breezy overhaul in the shape of the Xbox 360: Zephyr (or Xbox 360 v2.0).

The Zephyr, which is expected to be officially unveiled at this week’s Consumer Electronics Show in Las Vegas, should see future Xbox 360s equipped with a cooler (quieter?) 65nm processor, an HDMI port for ‘proper’ digital 1080p picture resolution, along with a whopping 120GB hard drive as standard—which will certainly come in handy as Microsoft ramps up the downloadable content on its Xbox 360 Video Marketplace.

Of course, those folks (everyone at GamerSquad included) who bought Xbox 360s at launch, or up until the release of any emergent Xbox 360 v2.0, are likely to feel somewhat abandoned by Microsoft when learning that new hardware changes are in the offing (see: Nintendo DS Lite).

Presently there is no concrete information pertaining to price or release for the Heffer—and whether us faithful Xbox 360 owners will get our 65nm processors and HDMI ports for free—Hohoho. More embittered comment will doubtlessly be issued as we learn more.