360 Revision Sets Sights on PS3

has obtained a picture of one of the new Xbox 360 units, codenamed Zephyr. Seeking to compete with the Playstation 3's hi-res capabilities, it adds an HDMI port and a 120GB hard-drive to the existing setup. But the question is: are people willing to pay more, especially if they already have a 360 sitting in their living room? Whatever the case may be, Engadget cites that Zephyr isn't too far off from the retail market.