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.

[vg247]

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]

Microsoft's next-generation Xbox console will launch in 2013 may not have a disc drive, according to an exclusive report from gaming news site MCVUK.

According to MCV's source, Microsoft has briefed its partners on the disc-less console under an extremely strict NDA.

Word is that discs will be replaced with some form of interchangeable solid state storage -- either a proprietary Microsoft drive or an existing format like SD -- and that all games will be sold digitally, doing away with hard copies.

MCV says the new system could be announced as soon as this June, at E3 2012.

However, the rumors don't square with what Kotaku has heard, which is that the new Xbox will upgrade its format to Blu-ray discs.

When asked for a comment, Microsoft responded, "We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention. Beyond that we do not comment on rumors or speculation."

[kotaku]