The new smaller Xbox 360 will not flash the "Red Ring of Death" — the iconic symbol of catastrophic system failure. It's new warning mark is the "red eye". Sounds...ominous.
It's not necessarily the red eye of death, though.
This new 250GB unit is clearly displaying the red dot. That's only half the story.
Apparently, here is the warning message this Xbox 360 is running:
The Xbox 360 is shutting down to protect the console from insufficient ventilation.
You can turn the console back on after the power light stops flashing.
It appears that when things go wrong for the new 250GB Xbox 360, it can send out a warning and shut itself down, giving Xbox 360 enough time to do something very important: Brace themselves.
New Xbox 360 Warning [NeoGAF via Engadget]