So Portland's still "in the game" these days, as they say ? Apart from Intel & Tektronix & Mentor, who's around up there of any significance ? You just don't hear much about it these days, seems. Most of the transplants we've got here talk about the one-horse town aspect (Intel) and all the state economic problems, housing costs, etc.
I do like the Oregon coast a lot, though. Anyhoo, so designing the next Xbox motherboard sounds fun for about the first 30 seconds, .... until I realize what it would be like to work in an environment designing the next "make or break" game console motherboard. No thanks, Steve B., not this guy.

Interesting that MSFT has acknowledged...even in roundabout fashion...that current and prior X-box designs may have a flaw or three. However, Mountainview is the wrong venue for a new X-box design group. The folks who design and validate the reference motherboards, from which 80% of the world's desktop and mobile motherboard designs are derived, live and work about 20 minutes SW of Portland, Oregon. We weren't willing to move to Seattle, and we aren't willing to move to Mountainview. And anyway, our development ecosystem is located here, also. Tell Uncle that he needs to open a design center just off one of the larger Portland area MAX (light rail) transit centers. He'll be glad he did.

Perhaps they are just developing a new case that looks like brown wrapping paper -- and which has Microsoft's customer service address laser-etched onto it -- as an added convenience factor for the constant RMAing required by Xbox customers?

With Nintendo possibly lauching the Wii 2 with improved HD video graphics in 2011, M$ might be preparing it's response too.
Nowadays it's possible to make a relatively cheap system which will make X260 and PS3 look really dated. And if the original Wii outsell it's two competidors combined now, one can guess that Wii HD would eat even more marketshare by atracting hardcore gamers.
M$ and Sony should be worried about that right now.
On the other hand, Ballmer might be trying to chop X360 manufacturing costs to make room for the project natal camera to fit inside X360 package within a sellable price. But I can't see how they can further reduce the manufacturing costs without integrating the CPU and the GPU in the same package, à lá PS2. That would require another kind of professional.

"The job description sounds something like Electrical Engineer with some experience with PC hardware and system busses as well as manufacturing."

Lips that kiss systems will never touch mine.

Hopefully they'll manage to make one that doesn't barbecue itself if you dare to turn it on.