Following a Develop rumour story, citing a source, which claimed an EA developer was in receipt of early next gen Xbox hardware, EA has said the talk is "100 percent not true".
Develop's story said the next Xbox is being played around with by an unnamed Electronic Arts studio, and was sent to the firm last month.
The site said the machine was a very early build, with no official case and therefore stored in a PC shell.
EA has stamped on this quickly.
"This story is a total fabrication – 100 percent not true," EA corporate spokesman Jeff Brown told Industry Gamers.
Develop's story included quotes from what it said was a "senior, trusted, well-placed" source.
“Quite often when new consoles come around they’re packaged into a PC shell, but actually what’s inside is an entirely new console."
Develop said that so far Microsoft and EA have both declined comment on the matter, and the source is not employed by either company.
The site said the person in question is under the assumption the cosole will be in stores by the end of 2012, and that an announcement of sorts will be mentioned at E3.
Eurogamer has also pushed back on the report, quoting another source as saying any E3 2011 announcement is "highly unlikely."
Microsoft has said in the past not to expect a new console from the firm until the current lifespan of Xbox 360 reached the 10-year mark, meaning it won't be released until 2014 at the earliest.
However, past sources have claimed the firm could be "pressured" into a 2013 should another new console burst out of the gate first - such as Nintendo's Project Café.
Last month, another source claimed a new Xbox SKU would hit in 2013, but it will not be the oft-rumored Xbox 720, only a Kinect-upgraded 360.