It’s about time for speculation over the next next-generation Xbox to kick into high gear, as Nintendo’s second-generation Wii preps for its moment in the spotlight at E3 this June.

Fresh from the rumor mill, a Thursday report from Develop— a trade news site for developers — said that a “senior, trusted, well-placed source” had seen a new prototype of the Xbox hiding in plain sight in a PC shell at an unidentified EA studio. The site’s source hazarded a guess that the console could debut at E3 , though Eurogamer has since checked with its sources, who said that a debut is highly unlikely.

Microsoft has said it is developing its next console, and whispers about the “Xbox 720”have been in the air since job postings for the Xbox Console Architecture team popped up on LinkedIn in March.

But Kotaku reported that Microsoft (and Sony) will likely wait until 2014 for the next release. The Xbox 360 is six years old, but it should have a pretty long life. Not only that, at least one major developer has said it’s too early for a new console.

"It still costs us a fortune to make games on this platform," Ken Levine, developer for Bioshock Infinite, Eurogamer in February. "If they're going to up the scale, up the art, up the content, I don't know how to make that and sell it to anybody for under $100 a game. Who wants to do that? It's bad for everybody."

Develop’s report also said that the new Xbox is supposed to have better support for the Kinect, Microsoft’s motion controller. Whatever that means, it at least sounds more likely than a June debut — the Kinect has been enormously popular and a major boost for Xbox sales.

What would you like to see in the next Xbox, and when would you like to see it?

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