166w ago - Kotaku is reporting on what appears to be a rumored XBox 360 slim model featuring a Valhalla chipset today.

Speculation is currently underway as to whether the source of the picture is a legitimate Chinese leak ala PS3 Slim, or a hoax.

To quote: "These pictures apparently show the guts of a new model of the Xbox 360. The important bits? The fact that for the first time the console combines the CPU and the GPU in a single chip. Oh, and it's small.

The pic shows the board in question, with the chip part of a rumoured redesign for the Xbox 360 console, testing of which has recently been completed in China.

This isn't simply a new board for the existing hardware, either; it's reportedly a total redesign of the console. Think the PS3 Slim, only... for an Xbox 360.

Now, considering the source, there's every reason to be sceptical of the images, and the info. Then again, with Natal due later this year, rebooting the 360 itself to go along with it would make a lot of sense, especially if a reduction in size could come with a reduction in cost."