Speculation about the new Xbox console is reaching critical levels, and the latest is that the Xbox 720 (as it has been dubbed) will now support Blu-ray, even though Microsoft themselves had previously stated that it had no interest in the disc format. Microsoft has suggested however that they feel the next step for the console was to offer games by download or cloud streaming exclusively.
Gaming site Kotaku says that the new Xbox will change from regular DVDs to Blu-ray disks in order to make some use of the greater storage capacity on offer. They have also said that the new Xbox will gain the Kinect 2, which will be shipped with an on-board processor, which was a feature that was originally intended for the first Kinect.
In regards to the Kinect, Kotaku have stated that an Xbox spokesperson told them "As an innovator we're always thinking about what is next and how we can push the boundaries of technology like we did with Kinect," the spokesperson said. "We believe the key to extending the lifespan of a console is not just about the console hardware, but about the games and entertainment experiences being delivered to consumers."
So the Xbox console rumour factory rolls on, and over the next coming months rumours will continue to circulate until the new device is revealed and the bloggers are satisfied.