Xbox 720 might be cheaper and smaller than the current model

Also would use Windows 9 and based on ARM architecture.

MSNerd blogger, a source that has proved reliable in previous leaks, has said that the next Xbox, currently codenamed "Loop" (old XboxTV), will be cheaper and smaller than Xbox 360.

The new console would also use Microsoft Windows 9 and hardware would be developed by Microsoft and two partners based on ARM architecture. The console would support multiple cores dedicated to graphics, AI, physics, sound, network, encryption and sensors, in addition to the main processor, and allow a better coupling Kinect.

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