According to a source close to BGR, Microsoft intends to unveil its next-generation Xbox console at E3 2012 next summer. The rumored console has been in development since 2006 and has been carefully kept under wraps. Earlier it was speculated that the next revision will be called XBOX 720, But that really seems unlikely.
With Kinect already doing better than expected, It makes sense for the Gaming department at Redmond to improve the hardware in the XBOX to bring on the next generation of Consoles which will be ready to handle next-gen Gaming.
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