> I just can't see an ARM processor in the new XBOX.

"A vague "snapshot" of the Yukon architecture for the system shows a core application architecture featuring six to eight 2Ghz ARM/x86 cores, with two additional ARM/x86 cores powering the system OS and three PowerPC cores handling backward-compatibility functions."
http://arstechnica.com/gaming/2012/06/leaked-document-points-to-299-xbox-720-for-2013/

Diagram:
http://cdn.arstechnica.net/wp-content/uploads/2012/06/xbox720specs.png