The new chip, provided by AMD, will be similar to the HD 6670 in specs.
If the rumors and leaks from sources across the industry are true then we'll have a brand new Xbox to look forward to at the end of this year. Lending even more credibility to the rumors is the alleged leak of details relating to the system.
The folks at IGN say that they've been able to confirm reports that the new Xbox will use a graphics chip that's pretty close to the Radeon HD 6670, which is compatible with DirectX11 and can handle 1080p HD, 3D and even multiple displays.
Use of this card would give the new Xbox six times the graphical power of the 360, which has to be getting developers excited. Even if graphical quality isn't improved dramatically, this would create freedom to make larger worlds without needing to obscure distant objects and allow for quicker rendering of large set pieces.