
One console will be an "entry-level system" while the second will be aimed the true hardcore gamer.
The entry-level console will be small like a set-top box and be aimed at the casual gamer. The device will access to many streaming services like Hulu Plus and Netflix and will allow for downloadable games from Xbox Live.
Moving up to the gamer's upgrade, the console will have an HDD, an optical drive, backwards-compatibility with 360 games and updated hardware, obviously. Rumored specs are a six-core CPU, AMD graphics and 2GB of DDR3 memory.
Of course, the entry-level system will be hundreds of dollars cheaper.