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A new DSL style project file format (.fbp8atp5) is now the default format, it is very easy to diff.  

project
begin
	projectid = {04710B72-066E-46E7-84C7-C04A0D8BFE18}
	target
	begin
		name = Default
		targetid = {E6DE94D6-5484-45E9-965A-DB69885AA5E2}
		rootaction
		begin
			action.group
			begin
				id = {D860420B-DE46-4806-959F-8A92A0C86429}
			end
		end
	end
end

A new xml format (.fbx8atx5), much less verbose than the old format.

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Compressed project files (.fbz8atz5) use the dsl format internally (compressed projects are just a zip file with a project.fbp8 atp5 inside it).

The default project file encoding is now UTF-8, which is more version control friendly (some version control systems treat utf-16 as binaries),