Jasper is the code name for the next motherboard for the Xbox 360. It will becoming next August, in time for next year's holiday season. Jasper is going to have a 65-nanometer graphics chip from ATI Technologies, as well as smaller memory chips. That isn't much information, but it's enough to tell us about their cost-reduction plan. If you ask me, it's a bit of a slow pace.
I don't know why it will take Microsoft essentially three years to cost reduce the size of the graphics chip through a manufacturing shrink. It doesn't seem like they're in a hurry to launch a redesigned Xbox 360 graphics chip, considering that Intel introduced its first 65-nm chips a long time ago. ATI uses TSMC to make its chips out of Taiwan, and TSMC hasn't been the fastest at moving to 65-nm manufacturing. I understand these tasks are difficult and they take a lot of engineering resources. Microsoft has had to divert a lot of engineers to debugging problems with Xbox 360 reliability. Even so, you would think that they would have moved faster, since the move to 65-nm graphics chip will likely be one of the best things they can do to improve the reliability.
Here's something that Xbox 360 buyers will want to know. Both Falcon and its predecessor Zephyr (used in the Xbox 360 Elite) have different thermal solutions than the original Xbox 360. You've seen the heat sinks in the cut-out photos posted elsewhere. The Microsoft engineers believe those heat sinks will be sufficient as a solution for keeping Xbox 360s from overheating. From their point of view, you don't have to wait until Jasper to get a reliable machine.