An industry source has told Kotaku that Microsoft's next Xbox will contain Blu-ray as its disc technology, and that it'll introduce Kinect 2; and that it's to contain some kind of anti-used game technology.
Such support would be a substantial data storage upgrade over 360's current DVD model, which can only support up to 9Gb max. Blu-ray, on the other hand, can support up to 25Gb on a single-layer disc, and up to 50Gb on dual-layer. Previous rumors peg the system to also ship with DVR functionality.
The source from the Kotaku report implied that Microsoft plans to incorporate an anti-used game application into the next Xbox. However, information on how such a scheme would be administered is unknown at this time.
Another chatterer has told Kotaku the next-generation of Kinect sensors will ship with the console, and that motion sensor will contain its own on-board processor - tech which was originally planned for the first iteration of Kinect.
The firm is also supposedly making the controller smaller than the one used with Xbox 360.
Add all of these rumors to yesterday's, which stated the next Xbox would contain six times the processing power of 360, and you have a broader picture of what "Xbox 720" is rumored to include under the hood. Maybe.