Rumour has it that the next Xbox is already at the manufacturing stage.

According to the latest reports, Flextronics has begun building the machines in Austin, Texas. That’s the same company that made the original Xbox and Xbox 360.

Rather than retail models, however, it is being speculated that the units are debugs for developers to get cracking making next-gen games.

Rather than just issue a flat-out, one sentence denial, Microsoft have gone a little further in responding to the rumour.

“Xbox 360 has found new ways to extend its lifecycle like introducing the world to controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships,” said a Microsoft statement.

“We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention. Beyond that we do not comment on rumours or speculation.”

Meanwhile, Flextronics has declined to comment.

[link]

I still feel that the 360 is evolving. No need for the next gen yet IMO.

100% agree, Besides with DLC and so on there really isn't any need to release a new console ever 5 or so years like the old days!

Totally agree on not needing a new console yet. With all the redesigns, DLC, and now that more "hardcore" games (i.e. Mass Effect 3) are incorporating Kinect, I just don't see why a new console would be necessary any time soon.