This.

People seem to be forgetting the 720 will be released late 2013 (not 2012), by which time the tech will be a lot more common. Plus I imagine they are going for a 10 year cycle with the new console, so this doesn't seem completely unfeasible.

But I have to imagine what is this console going to need, nitrogen cooling (pun intended)?

It's not a 16 core processor... it's a quad core with 4 threads per core, therefore 4 x 4 = 16.

We've heard this song before, just like the TG-16 wasn't really 16-bit, just an 8-bit processor with a 16-bit GPU co-processor, and the Jaguar wasn't really 64-bit, just two 32-bit processors with a 64-bit co-processor.

You really are supporting what he is saying.  I was working in IT at the time and the coming out of the X360 with a triple core was very strange.  There were few things that even could use dual CPU's as an advantage, so MS putting three CPU's was just beyond weird.  Why would you do that? and I thought it would be a complete nightmare for the programmers.

Plus, 3 is just an odd number to divide buy.

Turns out it was a great move, and even the PS3 which came out a year later, was barely (around 5%) more powerful; which is about negligible.  For example to go from 720P to 1080P is more than 60% and not all that noticeable.

I hope these rumors are right and the next Xbox is uber powerful.

This is much more believable. 

2000% agreed..... i don't see why those people think it's that crazy.... we are talking about a console that is not gonna release for at least 17 month and supposed to hold the line until 2020... 16 core is anything but irrealist or too much....

600 bucks if it's with 2 wireless pads kinect 2.0 and a game or 2 or xbl gold or some MS points it might be prohibitive for some people but that's why they had an arcade version... it is still not overpriced... then again when i bought my box i took a sport bundle.. with 2 pads starter kit xbl the big hdd and 5 games.... so multiple sku might be the way they go again...

remember also that the 720 will have to handle 3d at 1080p minimum, touch, movement tracking and voice rec.... plus all the apps from windows 8.... we might be able to use skype fb and other media while gaming... bottom line 16 core for a consol that will go until the end of the decade... is not over kill by any means... cell phones are about to get quad core by default....

Personally I think this is crazy talk.

There are TV's yes TV's today wich have dual core processors faster than Wii's capabilities.

There are mobile phones with Quad Core Processors.

If anyone actually believes tat in Xmas 2013 releasing a brand new console with a quad core CPU ( only  1 core bigger than the 360 in 2005 ) then I'm really lost for words.

In 2013 3D will be much more common. It will ave to run 1080p 3D out of the box.

Where Nintendo disappointment me is I firmly believe they are trying to relive the Wii success te same way. A wierd gadget thing. But to be onest if it cant do 3d at 1080p and provide me with full media interfaces then its useless in 2013.

M$ would be really absolutely stupid to not make it 8 core minimum. Because 3 years later in 2016 a quadcore quad tread is gonna be way underpowered. And outdone by TV's, Phones and even grandmas Zimmer Frame.

I wouldnt say crazy, but unless the architecture is very simple, 16 cores just doesnt seem likely.  There just isnt anything in the pipeline right now.  In 2005, the ground work for multicore processors was laid.  Right now, the reason that you don't see more cores is because you reach an inflection point where performance goes down after 6 cores in most applications, simply because scheduling becomes so complicated.  Also, the notion that it will be 4GHz is just false.  4GHz doesn't make much sense, the heat dissipation, parasitic capacitence, and syncronization errors are just too much to really be useful without super agressive cooling.  Having built and maintained a hexacore liquid cooled system for scientific research I can tell you that it is not the best option for a consumer product.  

If this thing has 16 cores in its CPU, it won't be a x86 or similar architecture, you would be looking at probably custom designed cores to do different tasks, some for kinect, some to buffer video, some for operating system, etc.   I honestly think the new Xbox comes with a streamlined consumer level 6 or 4 core chip with the real juice in the GPU, these days GPUs are where you get your performance anyway.  Whoever announced this probably also came up with the "Wii U sucks" and "PS4 is 7 gameboy pockets taped together" rumors, don't give it too much credit. 

I thougt the GPU rumour was it was inline with AMD's new Radeon HD 7000 series?

Zero, exactly, the CPU just doesn't have to do everything like it once did.  You have dedicated GPUs to pick up the slack now.  Like you said, a solid GPU with even a cheap for today CPU would destroy the performance of 360/PS3

That would be quite an improvement.