Microsoft's next Xbox might be a stripped-down version of the current system, according to Microsoft blogger MS Nerd.
In a Reddit post, MS Nerd -- who doesn't work at Microsoft, but may have inside sources -- claims the new Xbox will be based on an ARM processor, and will play "Arcade-style" games, run media apps, and work with the Kinect.
He speculates it will be released in late 2013 and cost about as much an Apple TV ($99). A "true successor to the 360" will follow "at some point after that," and Kinect will get updates to both its camera and processor by 2015.
Although rumors are rampant, Microsoft has been very quiet about its next Xbox console, and recently announced it won't be unveiling the system at this year's E3.
[joystiq]