According to sources, the new Xbox will have a controller that will have a touchscreen in addition to buttons and analog sticks. The HD screen is described as being similar to the Wii U controller, although the form factor will be different.

The console itself is described as a media hub, oriented towards “augmented reality, directional sound, and a four-player, finger-tracking Kinect.” While the CPU and GPU will apparently not be drastically more powerful, but the other features may push the console into the $600 range.

Source: CVG {link no longer active}