Like a lot of people now days I am dreaming about the next Xbox and what it should have in it. It will probably be a few years before microsoft even considers making a new console, but one can dream
Game consoles are just like PCs, for the most part they have the same technology but modified a bit to the developers liking. For instance the Xbox 360's hard drive is SATA I believe, but its interface was modified so that it wouldn't be used in a PC.
These are what I think should be in the new console keeping in mind that it is still in the future:
Processor: The processor should belong to the intel family in my opinion. Definitely a multi core 64 bit processor.
Ram: I don't care what company does the ram, but 4GB or more would be necessary.
Video Card: In my opinion the video card should be Nvidia instead of ATI this time around. The reason for this is because of two things. One being that Nvidia has new CUDA GPUs that are incredible. They are a new technology for GPUs and CUDA processors contain an Ageia PhysX processor capability in the GPU itself. With this technology console games can have support for extremely realistic physics capabilities enhancing gameplay. The second reason I would go with Nvidia is in case of SLI support. This would be a long shot for a console, but I believe that Nvidia dominates with multi graphics card performance. Crossfire would never due in a console.
Hard Drive: The hard drive seems to be ever shrinking, and the need for space seems to grow more and more. The Xbox keeps becoming more and more media based. One or two TB of free space. If it is possible at the time I would wish for one hard drive block, the the current 360's with two hard drives of that size, so it can support RAID 0. RAID 0 allows the data to be written on two different hard drives at the same time cutting the time to read and write in half. Also if the technology got far enough I would wish for the hard drives to be Western Digital Raptors.
Sound Card: The sound card is a very important piece to the gaming experience. The better the sound, the better the gameplay. Sound gives an important environment and atmosphere to your gaming experience. I don't know who would be better that Creative Labs to create a sound card for the new console.
Power Supply: I don't have a company in mind for the power supply, but I believe that the power supply should remain separate from the console. This would keep the weight down, and it would help prevent the console from overheating.
Cooling System: Consoles have gotten to the point where water cooling in necessary. Water cooling is less noisy, and more effective. This would prevent disasters like the RED RING OF DEATH!
Case: I will gladly give up good looks of the case to prevent design flaws like little air flow. Air vents must be strategically placed this time around.
Disk Support: Blueray definitely unless Microsoft decides to do flashdrives to hold games. I know I don't want to download any games. It takes an hour just to download a 1 GB demo, not to mention that most games are 8GB or more.
Yes the cost is going to go up, but not by much. In a few years the some of these thing will cost a lot less.