We can definitely cite quite a number of differences between the Xbox and its later model. But whether these differences would count at all, would really matter mostly on the individual characteristics of the consumers. It really depends on whether the person asking this question is somebody who simply wants to be able to play a video game at home during his past time. Or, whether this person is a total technological fan who is always out to get the latest model of gizmos.

First of all, the Xbox 360 is the latest model of Microsoft's gaming console. One might naturally expect that some of the features found inside the latest model would not be found in its predecessor. They would definitely not want to release something supposedly new that is basically the same as the older model, would they? That's the fact for every new edition of something that has been created before, especially regarding technological equipments and devices. There is always something added to it.

Improvement is always something that comes along in a new innovation. If you are a person who is quite meticulous about details, you would surely be able to notice slight differences between the computer graphics offered by the Xbox and its newer version.

The design of the new Xbox 360 is supposed to be able to work better with HDTVs. These matters are really to be able to go along with the other technological marvels in this day. They would naturally want to keep up and become as compatible as possible with the current state-of-the-art.

However, tests have been conducted using the Xbox 360. What they found was that, without the proper equipment to match the specifications of the game console, all the new innovations in its features would simply go to waste. If for example you connect it to a television set that only has an RF connection, you would basically get a quality of graphics that is probably 10 years behind what is being offered by the modern day.

Some of the other features that you would want to take into consideration are the wireless controllers available for the Xbox 360, its network gaming capability via a broadband connection, hard disc storage, and USB compatibility. It's basically a home entertainment system on its own. You would be able to view pictures and video from a digital camera, play music, etc.

Backwards compatibility is also an added feature that would allow you to play old Xbox games using the new game console. If you have the older one, then you would not be able to play the latest games that are to come.

As for me, I think that both of the units would be able to perform just as well. If you are satisfied with the conventional features of the old model, then go for it. It isn't really that out-of-date you know. But if you think that the difference between the Xbox 360 and the older version Xbox is that big, then go for it! You would definitely be getting some more great features out of the newer version. That is, of course, worth some extra money. Or you could simply wait for about a year and extend your patience until the prices go down. But by then there would probably be a 720 version of it.