IGN

Microsoft may be keeping quiet about development of the next generation Xbox, but a couple of crucial aspects of the console have surfaced by way of reputable Microsoft leak blogger MS Nerd.

The Xbox 720, as it has become commonly referred to as, is allegedly codenamed "loop," and will be much smaller than the Xbox 360. Moreover, MS Nerd claims the system will cost less to produce in the hopes for achieving higher Kinect adoption. In addition, the console will be based on a modified version of the yet-to-be-announced Windows 9.

MS Nerd continues by stating that "It will use a Zune HD-like hardware platform—a  'main' processor with multiple dedicated assistive cores for graphics, AI, physics, sound, networking, encryption and sensors. It will be custom designed by Microsoft and two partners based on the ARM architecture."

Microsoft has yet to divulge in any information regarding their next console, although it is rumored that it will be revealed next year at E3.

http://ie.ign.com/articles/2011/11/07/report-xbox-720-will-be-smaller-cheaper-than-xbox-360#disqus_thread

It's going to be based on Windows 9?!? Good lord is the next Xbox not coming out until 2016? Because they are completely skipping Windows 8 which isn't even out yet.

But anyways if it cost $350 or less as a base price I would be extremely pleased. I am very optimistic about the next Xbox!

Very intriguing. I hope each of the big three can find a successful niche in the gaming ecosystem. Maybe we can have three must-have consoles with unique experiences. Who knows for sure. ^_^

I hope the price part is true.

What I take from this and interested am is that Win9 may work on ARM.

Perhaps, x86 will finally see true competition?

FAKE.
720 will be out in 2-3 years max. Windows 8 will release next year(2012) so unless they plan on a 2 year life for Windows 8.........

Maybe confirms a suspicion I have that they would cut costs in size to incorporate KInect 2.0 standard in every Xbox.

I hope that win9 was a typo. I need me some Halo 5 with frostbite 2 graphics.

LOL Windows 9... "NextBox" to be released in 2016 confirmed!

And there's no guarantee that this thing will be smaller than the current 360 model, because it's going to require some serious cooling and airflow technology to keep it from having the same fail rate as its predecessor, and the smaller it is, the tighter the components are packed and therefore the harder it will be to vent.

http://money.cnn.com/2011/09/16/technology/windows_8_chipmakers/index.htm

It has already been announced that Windows 8 will work with ARM processors. 

Likely that this whole thing is supposed to say that Xbox 720 will be based on a modified version of Windows 8, otherwise we won't be seeing the next system for a long ass time.