Microsoft unveiled their follow up to the XBox 360, the XBox One, sporting 8GB of RAM, a Blu-Ray drive, USB 3.0, 802.11n Wi-Fi, a 500GB HDD, an 8-core x86 processor architecture (like what's in most computers), HDMI output and input (like Google TV), Infrared (for controlling your TV or Cable box), a new controller, an upgraded version of Kinect, HDMI input allowing you to overlay your XBox content on to live TV, and the system software is built on the Windows kernel (I'm hoping that this means it will run Windows 8 apps) allowing you to multitask by doing things like play games and have a Skype video chat at the same time or watch TV and use Internet Explorer (it also features some cool notification feature and the ability to quickly switch what you're doing by using Kinect voice commands).
_{Still no mention of cost or release date though.}

(Source: News.XBox.Com and YouTube.com/XBox)