Microsoft's next-gen Xbox may launch during next year's Christmas season, according to third-party developers who have reportedly been fully briefed on the console.
The good news: it will run on dual AMD GPUs and between four and six processor cores, and will come with a built-in Kinect and a Blu-ray drive.
The bad news: it may require an always-on Internet connection as an anti-piracy measure.
If Microsoft is considering requiring gamers to connect to Xbox Live even for single-player games, they're not alone: Sony's next PlayStation is also rumored to require a constant Internet connection.
These new rumors contradict a previous report from MS Nerd, saying that the Xbox released next year will be a "stripped-down" version of the 360.
Microsoft won't bring the new console to E3, and isn't expected to officially announce anything about it until 2013.